Four in 10 staff at care home giant threaten to quit over 'poverty' pay levels

28 October 2023 , 17:27

730     0

Workers say earnings are not enough (Image: Getty Images)

The country’s biggest care provider is facing a staffing crisis – with four in 10 workers threatening to quit over “poverty pay”.

HC-One owns more than 275 care homes, where union bosses say 40% of staff are considering leaving because they don’t earn enough to live. The lowest-paid carers earn just £10.47 an hour – compared to the £686,000 that HC-One’s highest paid director took home last year.

Employees report going without food so their kids can eat, carrying out DIY dentistry and drowning in debt, a survey of members by union GMB found. One carer, a mum of two, told the union she “prays for sleep” so she doesn’t “feel hungry”. She said: “My two children both have mental health problems, which I feel is a direct result of not being able to afford basic essentials like dentists, food, clothing etc.

James Tugendhat

"I have had to carry out dental treatment on myself and my youngest daughter. I have been threatened with eviction due to having to self-isolate in the pandemic and I have had to take debt advice despite working full time. My life is now completely depressing. I feel I’ve failed my children.”

Others say they can’t afford to heat their homes and have had to buy food with a credit card. HC-One is headed by CEO James Tugendhat, the brother of Tory MP Tom Tugendhat. The fat-cat boss and his wife own a five-bedroom period property in leafy north London valued at £2.5million.

England star Joe Marler reflects on lowest point after fight with pregnant wife

Meanwhile HC-One’s general counsel Charleen Cutler sold a property last year in Surrey for £1.4million. HC-One is owned by a firm called HC-One TopCo Ltd, registered in the Cayman Islands, a Caribbean tax haven. Its highest-paid director took home 16% more in pay and bonuses last year – £686,000, up from £592,000 the previous year.

The company recorded a turnover of £382.4million for the year ending September 30, 2022. The union is calling on HC-One – whose slogan is “the kind care company” – to pay staff the Real Living Wage, which has just risen to at least £12 an hour, or £13.15 for those in London.

Natalie Grayson of GMB

The voluntary employers’ pay scheme is based on the cost of living and is set by the campaign group the Living Wage Foundation. Natalie Grayson, GMB national officer, said: “HC-One carers dedicate their working lives to looking after our loved ones.

“Yet the poverty pay they have to survive on means they can’t afford to feed their own loved ones or keep them warm in winter. HC-One directors must make sure the company lives up to its ‘kind’ reputation.” According to the GMB survey, 75% of members said the HC-One care home they worked at was understaffed.

Better pay elsewhere was a reason given for the firm’s recruitment and retention problem. HC-One said 80% of workers were moved to the Real Living Wage or more in a £32.5million deal agreed last April. The firm said: “Given the recently announced increase in Real Living Wage rates, we will continue to work towards providing our colleagues with the best possible pay.”

Nicola Small