We consider how sustainable practices in care homes enhance resident wellbeing and transform operational challenges into economic opportunities through strategic energy efficiency investments.
Rethinking sustainability and carbon reduction in care facilities
The cost of care in England is rising rapidly. As of January 2025, the weekly fees for private residential care average £1,160, and for nursing care, £1,410, according to carehome.co.uk. Additionally, operational costs are placing a significant strain on profit margins. Care providers are navigating several obstacles: striving to meet net zero targets, budgetary pressures, the impact of the national minimum wage, changes to Employers National Insurance (NICs) thresholds and contributions from April 2025, and the need for ongoing investments in their facilities. However, investing in sustainable practices and enhancing building performance can transform some of these challenges into opportunities.
Operational cost reduction
According to the Care England January 2025 Pulse Report, 38.8% of care providers confirm that utility costs are putting additional pressure on their operational budgets. Implementing energy-efficient measures can substantially cut utility costs – reducing energy consumption and carbon emissions by up to 50%. With a comprehensive net zero plan, these reductions can even reach 85%. For example, an 11-bed care home in Manchester reduced their annual energy bill by £20,000 after installing energy-efficient lighting and heating systems. Additional savings can also be achieved through innovative waste resource matching and waste brokering, which can reduce waste disposal costs by up to 30%.
Reinvesting savings into care
The average annual energy cost per resident is £1,233, with costs ranging from £658 to £1,757 per resident, according to 2024 data from Focus Energy. The financial savings from sustainability measures can be substantial. For example, a care home that saves £50,000 annually on energy costs could reinvest these funds into hiring additional carers. With the average salary for a carer around £21,400 per year, these savings could fund two extra full-time carers or contribute towards increased pay and NICs contributions. Such reinvestments directly improves or sustains the quality of care provided.
Energy security
New and even refurbished care homes built to net zero standards can generate between 15% to 75% of their own power needs, reducing utility bills and boosting energy security. By integrating renewable technologies such as photovoltaic panels and battery storage, care providers can turn their buildings into resource generators. For example, Danforth Care Homes, which operates 1,200 beds across 18 care homes, has successfully combined solar PV with battery storage to reduce their electricity costs to one-third compared to non-EPC A rated homes. They also sell surplus power back to the grid, offsetting maintenance costs and further reducing expenses.
Smaller providers, who constitute about 80% of the market, have the potential to form energy clubs. By pooling their energy purchasing - in the same way Care England is doing with its energy partner – can significantly increase their buying power. The care sector currently spends is circa £550m annually on energy. Medium to long-term investment in building infrastructure could not only reduce these costs but also lessen the annual energy burden on care bills and cut the sector’s 1.5m tonnes of carbon emissions.
Reduced staff absence
Improved building systems create healthier environments, leading to a reduction in staff absences due to illness. The care sector faces a significant concern with sickness losing an average of five days per person, which translates to 7.2 million days across adult social care for the 2023-2024 period, according to the 2024 Skills for Care report. These absences cost care providers over £120m annually in overtime, sickness pay, and agency fees to cover shifts, calculated at minimum wage alone. By improving air quality and allowing localised control of heating, humidity, and temperature, facilities can foster a healthier environment for staff and residents. According to Harvard research, better ventilation alone can decrease absenteeism by up to 35%, improve cognitive function by 61% and boost productivity by 10%.
Positive impact on residents
Sustainable care facilities offer a healthier living environment for residents. Improvements such as air quality, better temperature control, and natural lighting enhance overall wellbeing and can help to reduce falls and the spread of infections. Residents experience fewer health issues due to reduced exposure to pollutants and allergens, leading to a higher quality of life. Additionally, using renewable energy sources provides a more stable and reliable power supply, preventing disruptions that can affect residents’ comfort and safety.
Investing in sustainability is not only a necessity, but an opportunity to rethink spending and investment strategies during times of tight budgets. Transforming built assets from cost centres to income generators through improved energy efficiency can also enhance property values. For example, properties in the UK with higher energy performance can sell for up to 14% more than those with poorer performance. Moreover, Behavioural Change for Energy Efficiency is training worth considering and can reduce energy costs by 10-25%, making it a valuable investment for reducing operational costs and improving efficiency in care settings.
Find out more about how taking sustainable actions can help you tackle the cost of care crisis:
Fiona Brazill
Head of Proposition Sustainability and Net Zero, Capita Public Service
Fiona Brazill is the Head of Proposition for Sustainability and Net Zero for Capita Public Service. She is currently delivering Climate Action Planning to decarbonise across Care, Health, Schools and Public Sector Offices.
