Care Workers Warn of Financial Strain Amid Rising Fuel Prices

A South Yorkshire-based caregiver has emphasized that compensating home care staff for both mileage and travel time is essential, citing the ongoing surge in fuel expenses. Many caregivers rely on their personal vehicles to conduct house-to-house visits, sometimes covering hundreds of miles weekly, yet they frequently lack employer support for these operational costs.

While industry representatives argue that care firms are financially unable to boost mileage reimbursements due to insufficient funding from local authorities and NHS integrated care boards, the government maintains it is focused on reducing expenses for drivers and injecting financial support into the care workforce.

Amanda Nottingham, 42, who works for Sheffield-based Visiting Angels, reported that her employer provides 35p per mile. However, with weekly driving distances ranging from 100 to 300 miles (161–483 km), she estimates her monthly fuel expenditure reaches up to £400.

"I likely spend between £75 and £100 a week on fuel. It is a significant expense," Nottingham stated. Although she acknowledged that the current mileage payment offers "massive help," it does not fully offset her costs. Her situation reflects a broader trend, as petrol and diesel prices have climbed sharply since the onset of the conflict in Iran in February. According to the RAC’s Fuel Watch data, unleaded petrol is now 26.7p per litre more expensive than it was three months ago.

Nottingham noted that while her employer reimburses her for travel time between appointments, this practice is not universal across the sector.

"It should be mandatory for all carers to receive compensation for their travel and fuel," she asserted. "We are performing a vital role in ensuring individuals can remain in their own homes, providing comfort and care to their loved ones. The hours are long, and without fuel or travel allowances, retaining staff becomes difficult."

Funding Gaps

In May, Chancellor Rachel Reeves announced an increase in the tax-free mileage rate by 10p, raising it to 55p per mile to assist workers who use personal vehicles for professional duties. However, the Homecare Association highlighted a disparity in how this is implemented: four out of five care workers drive their own cars, yet 60% of providers still pay mileage at 40p per mile or less.

Dr. Jane Townson, chief executive of the Homecare Association, explained that many companies lack the financial capacity to match the new 55p rate.

"Most employers do provide mileage payments, but few can reach the 55p threshold because the income they receive from councils and NHS integrated care boards is inadequate," Townson said. She pointed out that while the association calculates the minimum cost for home care in 2026–27 at £34.42 per hour, the average payment received from councils and the NHS is approximately £24 per hour.

Dan Archer, chief executive of Visiting Angels, stated that cost-of-living pressures disproportionately affect home carers due to their low wages. He confirmed that his company pays for travel time and is evaluating whether to increase mileage rates in response to the Chancellor’s announcement. However, he warned that a lack of travel compensation nationwide risks pushing effective hourly wages below the national minimum wage.

"Pay inequity exacerbates the impact of cost-of-living pressures," Archer said. "Currently, the system relies on the goodwill of carers, who should not be subsidizing these services. Whether the funding originates from central or local government, it is fundamentally flawed that care workers are currently covering these costs by subsidizing care packages themselves."

Workforce Retention Concerns

There are growing fears that escalating fuel costs could drive more care workers out of the sector. Townson warned that this could lead to caregivers refusing to travel longer distances, potentially leaving residents in remote areas without access to necessary care.

Source: BBC News Generated at: 2026-06-01 05:13:18 UTC