Domiciliary Care (Home Care)
The Homecare Association minimum sustainable price is £32.14/hr. Evening, weekend and bank holiday visits attract premium rates.
How to Start a Care Agency in the UK: Your Complete Guide
This guide walks you through every step of starting a care agency, from choosing your service type to achieving CQC registration and winning your first clients. Whether you want to launch a domiciliary care company, a supported living service, or a temporary staffing agency, the process follows the same core pathway.
£8.5B+
The UK domiciliary care market is valued at over 8.5 billion pounds, and independent providers deliver the majority of that care.
Starting a care agency in the UK is one of the most rewarding business decisions you can make in 2026. The adult social care sector supports over 1.6 million people across England, and demand for domiciliary care continues to grow as the population ages and more people choose to receive care in their own homes.
At Care Sync Experts, we help care providers across England build safeguarding frameworks that meet CQC requirements, protect the people they support, and stand up to inspection.hello@caresyncexperts.co.uk
Why Start a Care Agency in the UK
The care sector in the UK presents a strong opportunity for new providers. The Office for National Statistics projects that the number of people aged 65 and over will increase by 20 per cent over the next decade, driving sustained demand for home-based care services.
1.59M
People employed in adult social care in England
6-8%
Annual growth in domiciliary care sector
20%
Projected increase in people aged 65+ over next decade
Several factors make starting a care agency a compelling business proposition. The sector demonstrates consistent growth year on year, with domiciliary care seeing annual growth of 6 to 8 per cent. Private pay rates for home care range from 25 to 38 pounds per hour, offering healthier margins than local authority contract rates. Providers who focus on private clients can achieve margins of 15 to 25 per cent, compared to 3 to 8 per cent on council-funded packages. The flexibility of the domiciliary care model also means you can start small and scale as demand grows, keeping initial overheads manageable.
Local authorities across England commission thousands of care packages each year, and many actively seek new providers to join their approved lists. The Association of Directors of Adult Social Services regularly highlights capacity pressures in home care provision, which means there is genuine demand for quality providers in most areas of the country.
Types of Care Agency You Can Start
Before you begin the setup process, you need to decide which type of care service you want to provide. Each service type has different regulatory requirements, staffing models, and revenue structures, so choose the model that aligns with your experience, your local market, and your long-term business goals.
Supported Living
Provide care and support to people living in their own accommodation, often people with learning disabilities, autism, or mental health conditions.
Temporary Staffing Agencies
Supply care workers to other providers, care homes, and NHS settings.
Live-in Care
A live-in carer resides with the service user and provides round-the-clock personal care and companionship in their own home.
What Qualifications Do You Need to Start a Care Agency
One of the most common questions from aspiring care providers is what qualifications you need to start a care agency in the UK. The requirements depend on your role within the business.
Registered Manager
- Level 5 Diploma in Leadership for Health and Social Care
- Minimum 2 years supervisory/management experience
Every CQC-registered care agency in England must have a Registered Manager who takes responsibility for the day-to-day operation of the service. The Registered Manager must hold, or be working towards, a Level 5 Diploma in Leadership for Health and Social Care (or an equivalent qualification such as an NVQ Level 4). They also need demonstrable experience working in the care sector, typically a minimum of two years in a supervisory or management role.
If you plan to be the Registered Manager yourself, you will need to meet these qualification and experience requirements before CQC will approve your application. If you do not hold the required qualifications, you can appoint someone who does and take on the role of Nominated Individual or company director instead.
The person applying to be the registered provider does not need specific care qualifications, but CQC will assess whether you are a “fit person” to carry on the regulated activity. This assessment considers your character, financial position, and ability to meet the requirements of the Health and Social Care Act 2008. You will need to demonstrate an understanding of the regulations, your responsibilities as a provider, and how you will ensure quality care delivery.
Provider and Director
- "Fit person" assessment by CQC
- Understanding of regulations
- Financial viability
DBS Checks
- Enhanced DBS for all key individuals
- Must be less than 12 months old
- Required for all care workers
All key individuals involved in the care agency, including the provider, Registered Manager, and any directors, must have an enhanced Disclosure and Barring Service (DBS) check less than 12 months old at the time of your CQC application. Every care worker you employ will also need an enhanced DBS check before they can start delivering care.
How to Start a Domiciliary Care Agency
Thinking about starting a home care business? Our guide covers everything from company formation and CQC registration to hiring your first care workers.
How Much Does It Cost to Start a Care Agency
Understanding the costs involved in starting a care agency helps you plan your finances and secure appropriate funding. The total startup cost for a domiciliary care agency in the UK typically ranges from £3,000 to £15,000, depending on your setup.
Breakdown of Typical Startup Costs
| Item | Details | Cost |
|---|---|---|
| CQC Registration | Annual fee based on turnover | Varies |
| Companies House | Online registration | £12 |
| DBS Checks | Per person | £40–60 |
| Insurance | Professional indemnity & public liability (annual) | £800–2,000 |
| Care Software | Management software per month | £50–300 |
| Marketing | Website, branding, advertising | £500–3,000 |
Home Office Option
Many domiciliary care agencies start from a home office with a dedicated, lockable room that meets data protection requirements. This keeps initial overheads low while you build your client base.
Professional Support
Working with an experienced healthcare consultancy such as Care Sync Experts reduces the risk of application delays and ensures your documentation meets CQC standards from the start. Our domiciliary care package covers everything from business plan creation to interview preparation.
Funding Options
Several funding routes exist for new care agencies. Start Up Loans offer government-backed personal loans of up to £25,000 for UK businesses. High street banks offer business loans and overdraft facilities. Some aspiring care providers use personal savings, while others access grant funding from local enterprise partnerships or community development finance institutions.
Your care agency business plan will need to include a three-year financial forecast showing projected revenue, costs, and profitability to secure any external funding.
Writing a Care Agency Business Plan
A detailed business plan is essential for CQC registration and for securing funding. CQC expects a thorough business plan that demonstrates you have researched your local market, understand the regulatory requirements, and have the financial resources to sustain the service.
What CQC Expects in Your Business Plan
Your business plan should include a company overview covering your legal structure, company directors, and Registered Manager details. Include a comprehensive market analysis that identifies the demand for care services in your target area, the existing providers, and the gaps you plan to fill. Research your local authority area using data from the Office for National Statistics and NHS Digital to support your projections.
The financial section is critical. CQC requires a three-year cash flow forecast showing month-by-month projected income and expenditure. Include your startup costs, ongoing operational costs, projected client numbers, and the point at which you expect to break even. CQC may ask an accountant to verify your financial viability, so ensure your figures are realistic and well-supported.
Your business plan should also cover your service delivery model (types of care, hours, geographic coverage), your staffing plan (recruitment strategy, training programme, supervision arrangements), your quality assurance framework, and your marketing strategy for winning clients.
Care Sync Experts create bespoke CQC business plans for care providers that meet every CQC requirement and have a proven track record of successful registrations.
CQC Registered Manager Requirements
What qualifications, experience, and skills does a CQC Registered Manager need? Our guide covers the fit person requirements, DBS checks, interview preparation, and ongoing responsibilities.
Setting Up Your Care Company Structure
Most care agencies in the UK operate as limited companies, which separates your personal assets from the business and provides a professional structure for regulatory purposes.
Company Registration
Register your company with Companies House as a limited company. You will need to choose a company name, appoint at least one director, register a business address, and create articles of association. Online registration costs 100 pounds and is usually processed within 24 hours.
After registering with Companies House, register with HMRC for Corporation Tax. If you expect your turnover to exceed the VAT threshold (currently 90,000 pounds per year), register for VAT early to avoid penalties. You must also register with the Information Commissioner's Office (ICO) for data protection, which is a legal requirement for any organisation that handles personal data, and care agencies handle sensitive personal data daily.
Business Insurance
Care agencies require specialist insurance that covers the risks associated with providing personal care. At minimum, you need employers' liability insurance (a legal requirement once you employ staff), public liability insurance, professional indemnity insurance, and motor insurance for staff using vehicles to travel between client visits. Several insurance providers specialise in the care sector, including Marsh Commercial and Surewise.
CQC Registration: How to Register Your Care Agency
CQC registration is the most important step in setting up your care agency. Under the Health and Social Care Act 2008, you cannot provide regulated activities (such as personal care) in England without being registered with the Care Quality Commission. Operating without registration is a criminal offence.
The CQC Registration Process Step by Step
- Step 1
Prepare Documentation
Prepare all your supporting documentation: business plan, statement of purpose, policies and procedures, financial viability evidence, DBS checks for all key individuals, and your Registered Manager's qualifications and CV. CQC requires the Registered Manager's CV to show a complete employment history from age 16, with any gaps over one month explained.
- Step 2
Submit Application
Since November 2024, CQC no longer accepts online applications for new registrations. All applications must be submitted via email to HSCA_Applications@cqc.org.uk. Submit the provider application form, the personal care additional information form, the Registered Manager application form, and (if applicable) the learning disability and autism additional form.
- Step 3
CQC Review
CQC will review your application and may request additional information or clarification. This stage can take several weeks depending on the completeness of your submission.
- Step 4
Fit Person Interview
CQC will schedule a fit person interview with you and your Registered Manager. This interview assesses your understanding of the regulations, your governance arrangements, your approach to safeguarding, medication management, staff recruitment, and quality assurance. CQC will ask scenario-based questions to test your practical understanding, not just your theoretical knowledge.
- Step 5
Registration Certificate
Once CQC is satisfied that you and your Registered Manager are fit persons and that your service will meet the fundamental standards, they will issue your certificate of registration. The entire process typically takes 8 to 16 weeks from submission to registration.
Policies and Procedures
CQC requires comprehensive policies and procedures covering safeguarding adults, medication management, infection prevention and control, recruitment and selection, complaints and compliments, whistleblowing, data protection, health and safety, equality and diversity, mental capacity and consent, duty of candour, lone working, business continuity, and quality assurance. Your policies must be tailored to your specific service. Care Sync Experts provide fully bespoke domiciliary care policies and supported living policies tailored to each provider.
Statement of Purpose
Your statement of purpose is a legal document required under Regulation 12 of the Care Quality Commission (Registration) Regulations 2009. It must describe your service, your aims and objectives, the types of care you provide, the people you support, your registered locations, your Registered Manager details, and your complaints procedure. CQC publishes your statement of purpose, so it also serves as a public-facing document.
How to Start a Supported Living Service
Planning a supported living service? Learn what CQC expects, how to structure your service, and the steps to get registered and operational.
Recruiting and Training Care Staff
Staff recruitment is one of the biggest challenges facing care agencies in the UK. Skills for Care reports a vacancy rate of around 9 per cent in adult social care, with approximately 131,000 vacancies on any given day. Planning your recruitment strategy before you register will give you a head start.
Finding Care Workers
The most effective recruitment channels for care workers include online job boards (Indeed, Total Jobs, Reed), social media advertising (Facebook and Instagram targeted at your local area), local community networks, and word of mouth from existing staff. Some providers also recruit internationally, which requires a sponsorship licence from UK Visas and Immigration.
Staff Training Requirements
All new care workers must complete the Care Certificate within 12 weeks of starting work. This covers 15 standards including duty of care, communication, privacy and dignity, fluids and nutrition, and safeguarding. Beyond the Care Certificate, your staff will need ongoing training in areas such as medication administration, moving and handling, infection control, first aid, safeguarding, and mental capacity.
Your Registered Manager should hold or be working towards the Level 5 Diploma in Leadership for Health and Social Care. Field care supervisors typically need a Level 3 qualification. Building a comprehensive training matrix that maps every role to its required training courses ensures you meet CQC standards and can evidence staff competency during inspections.
Recruiting and Training Care Staff
Staff recruitment is one of the biggest challenges facing care agencies in the UK. Skills for Care reports a vacancy rate of around 9 per cent in adult social care, with approximately 131,000 vacancies on any given day. Planning your recruitment strategy before you register will give you a head start.
Private Clients
Highest ratesPrivate clients (also called self-funders) offer the highest hourly rates and the most flexibility. Families typically find care agencies through Google searches, local directories, recommendations from GPs and hospital discharge teams, and the CQC provider directory.
Highest rates
- Professional website with clear information
- Google Business Profile optimization
- Positive reviews and testimonials
GP practices are often the first point of contact when families recognise they need care support. Introduce your agency to GP surgeries, health centres, and hospital discharge teams in your area.
Local Authority Contracts
Steady VolumeMost local authorities maintain approved provider lists for domiciliary care. Getting onto these lists typically requires a CQC rating, completion of a quality assessment, and agreement to the authority's framework rates.
Requirements
- CQC Good or Outstanding rating
- Quality assessment completion
- Framework rate agreement
Some authorities use Dynamic Purchasing Systems that allow new providers to join at any time. Contact your local authority's adult social care commissioning team to understand their procurement process.
Building Referral Relationships
Long-term PipelineHospital discharge teams, social workers, community nurses, and occupational therapists all refer clients to domiciliary care agencies.
Networking Actions
- Attend health and social care networking events
- Join provider forums in your area
- Demonstrate consistently high-quality care delivery
Building strong relationships with these professionals takes time but creates a reliable referral pipeline. Attend local networking events, join provider forums, and demonstrate consistently high-quality care delivery.
Technology and Systems for Your Care Agency
Modern care agencies need digital systems to manage scheduling, care planning, medication records, staff rotas, and compliance monitoring. Care management software helps you deliver better care, maintain regulatory compliance, and operate efficiently.
The main features to look for in care management software include electronic care planning, real-time visit monitoring, medication administration records, staff scheduling and rota management, GPS tracking, client and family communication portals, and CQC compliance dashboards. Leading providers in the UK market include Birdie, CareLineLive, Access Care Planning, Log my Care, and CarePlanner. Choose a system that integrates with your payroll and invoicing processes and that your care staff find easy to use on their mobile devices.
Marketing Your Care Agency
Marketing your care agency effectively determines how quickly you build your client base and reputation. A combination of digital marketing and local community presence works best for new care providers.
Website and SEO
Your website is your most important marketing asset. It should clearly describe your services, your service area, your team, and your CQC registration status. Each service type should have its own dedicated page targeting relevant keywords. Focus on local SEO by optimising your Google Business Profile, building citations on care directories, and generating Google reviews from satisfied clients.
Social Media
Facebook and Instagram are the most effective social media platforms for care agencies. Share content that shows the human side of your service: staff training days, team celebrations, community involvement, and client stories (always with proper consent). LinkedIn works well for building professional relationships with commissioners, social workers, and other healthcare professionals.
Offline Marketing
Do not underestimate the power of local marketing. Leaflet drops in your target area, attendance at community events, partnerships with local charities and churches, and sponsorship of local sports teams all build brand recognition. Print professional business cards and brochures to leave with GPs, hospitals, pharmacies, and community centres.
Growing Your Care Business
Once your care agency is established and delivering quality care, you can focus on growth. The most common growth strategies for care agencies include expanding your geographic coverage, adding new service types, winning local authority framework contracts, increasing your private client base through marketing, and recruiting more staff to increase your capacity.
Growth should always be managed carefully. Expanding too quickly without the staffing infrastructure, management capacity, or quality systems to support it can lead to poor care outcomes and a negative CQC inspection result. Plan your growth in stages, ensuring each stage is financially sustainable and operationally sound. If you want to add supported living or other regulated activities to your existing registration, you will need to apply to CQC to vary your registration conditions. Care Sync Experts guide providers through registration variations and help ensure a smooth process.
Watch before you start
Three walkthroughs from the team that files these applications: what a care agency costs to set up, the order to do it in, and whether the market is worth entering right now.
How Much Do I Need to Start a Care Agency in the UK
What it actually costs to get a UK care agency off the ground, from company formation through to the CQC fee.
How to Set Up a Care Agency: Everything You Need to Know
The full set up sequence for a new care agency, in the order a new provider has to do it.
Home Care Agency in 2026: Is Now the Right Time to Start?
Where the home care market stands going into 2026, and what that means for anyone deciding whether to start now.
How Care Sync Experts Help You Start Your Care Agency
Care Sync Experts is a specialist healthcare consultancy that supports care providers through every stage of setting up and growing their care business. Our team includes former CQC professionals with direct experience of the registration and inspection process.
We offer tailored packages for domiciliary care registration, supported living registration, combined care agency setup, and temporary staffing registration. Each package includes a bespoke business plan, statement of purpose, full policy and procedures suite, CQC application form completion, fit person interview preparation, and ongoing compliance support. We also support providers in Northern Ireland (RQIA registration) and Wales (CIW registration).
Get In Touch
To discuss your care agency plans with our team, call 0333 577 0877 or email hello@caresyncexperts.co.uk. We offer a free initial consultation to understand your goals and recommend the right package for your needs.
Frequently asked questions
The entire process from initial planning to CQC registration typically takes 3 to 6 months. Company registration takes 1 to 2 days, DBS checks take 2 to 4 weeks, and CQC registration takes 8 to 16 weeks depending on application quality and CQC processing times. Working with an experienced consultancy like Care Sync Experts can help you avoid common delays caused by incomplete applications or poorly prepared documentation.
You do not need specific care qualifications to be the registered provider or company director. However, your Registered Manager must hold or be working towards a Level 5 Diploma in Leadership for Health and Social Care (or equivalent) and have relevant care sector management experience. All key individuals need enhanced DBS checks.
There is no application fee for CQC registration. Once registered, you pay an annual fee based on your turnover bracket. For a new domiciliary care agency with turnover under 120,000 pounds, the annual fee starts from a few hundred pounds. The main costs are the supporting documentation, professional advice, and business setup costs rather than the CQC fee itself.
Yes, many domiciliary care agencies operate from a home office. CQC accepts a home office as your registered location provided it is a separate, lockable room that meets data protection requirements. You must be able to store records securely and maintain client confidentiality. As your agency grows, you may choose to move to commercial premises, but it is not a requirement.
While care sector experience is not a legal requirement for the registered provider or company director, it significantly strengthens your CQC application and your ability to run the business effectively. If you do not have care experience, appointing an experienced Registered Manager is essential. CQC will assess your overall understanding of the care sector, the regulations, and your ability to ensure quality service delivery during the fit person assessment.
At minimum, you need employers' liability insurance (legally required once you employ staff), public liability insurance, professional indemnity insurance, and motor insurance for staff travelling between client visits. Specialist care sector insurance providers offer combined packages that cover all these requirements. Budget approximately 800 to 2,000 pounds per year for comprehensive cover.
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