HC-One announces over £20m investment in colleague pay for 2025

HC-One is reinforcing its commitment to colleagues with a significant investment of over £20 million in pay and conditions for 2025.

As the UK’s largest health and social care employer outside the NHS, HC-One’s latest investment builds upon its 2024 pay increase. This means that nearly 90% of colleagues across its almost 300 care homes will earn the Real Living Wage (RLW) or above, with all eligible to earn RLW or higher after two years of service.

Developed in consultation with the recognised union for HC-One care colleagues, GMB, the pay offer was overwhelmingly accepted by its members. Despite the financial pressures facing the sector, HC-One has once again delivered an above-inflation pay increase, recognising the dedication of its workforce.

Enhancing Sick Pay Support

In addition to higher wages, HC-One has further improved its sick pay offer in partnership with the GMB. From 1st October, colleagues will receive £40 per day for the first three days of sickness—more than double the new statutory rate of £16.96. This builds on HC-One’s 2024 commitment to providing sick pay from day one, ensuring greater financial security for colleagues.

A Milestone in Colleague Pay Investment

This latest investment brings HC-One’s total spend on colleague pay to over £110 million since 2021, reflecting its long-term commitment to rewarding the dedication of those caring for over 14,000 residents across England, Scotland, and Wales.

James Tugendhat, Chief Executive at HC-One, said:
“Our colleagues are at the heart of how we support and care for residents across Britain, and it is only right that we continue to do everything we can to reward them for the crucial work that they do.

“Despite the continued challenges facing the sector, we are immensely proud of our commitment to improving colleague pay and to have also made further improvements to sick pay. Our total investment in pay of over £110m in just four years marks a significant milestone for us, and we see the impact of this investment in our ever-improving retention rates.

“We are also continuing to engage with our local authority and NHS partners, who fund the majority of the residents we support, to secure fee uplifts that will enable us to go even further on colleague pay, as we continue to support those in our care to lead their best lives.”

Continued Investment in the Future

Alongside its investment in colleague pay, HC-One is making further improvements across the organisation. This includes an ambitious digital transformation to enhance resident care and support, as well as the largest care home refurbishment programme in the NHS and Local Authority-funded sector—covering over 200 homes.

HC-One’s commitment to quality care has also been recognised externally. In February, the organisation was shortlisted as a finalist for Residential Care Provider of the Year (Large Group) at the 2025 HealthInvestor Awards, reflecting its dedication to investment and helping residents live their best lives.

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