Research commissioned by Co-operatives UK and Cwmpas reveal that co-operative care providers emphasise empowering service users, paying and treating workers fairly and keeping wealth within local communities, unlike many profit-driven companies in the sector.
Social Care Co-operatives in the UK, produced by the Centre for Care, the Centre for Adult Social Care Research (Care), and supported by Impact, examines the advantages of co‑ops and argues that reform of commissioning, and the building of partnerships, can support their growth to provide “fairer, better quality, community-rooted care”.
Rore’s 2025 report, Ending Extraction in the UK Care System, examined social care provision in the North East, South Yorkshire and West Midlands combined authority regions between 2021 and 2024. It found that private care companies operating in those regions made £256m in profit over three years, with more than a third owned by private equity firms, companies based in tax havens, or both.
The report also found that £45m was paid out in dividends to shareholders, while frontline care workers were often paid below the living wage – “a contributing factor to the current social care crisis, with under-paid, overworked staff and the knock-on effect this has on the quality of care”.
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Meanwhile, researchers for Social Care Co-operatives in the UK found that with no shareholders to pay, social care co-operatives “reinvest their surplus in innovation, improving service provision, supporting local communities and boosting local economies through locally sourcing equipment, services and staff“.
It adds: “Paying at or above the Living Wage and giving workers a say in the business, social care co‑operatives create favourable working conditions, resulting in greater staff retention, improved gender balance and success in attracting younger workers.
“By giving service users a say in the design of their care – and focusing on quality, relationships and co-production – social care co-operatives’ values translate into tangible improvements in the quality of care and service users’ experience of care.”
The report recommends a phased pathway for supporting the establishment and growth of social care co-operatives over the short, mid and long term.
This includes working with local authorities on commissioning criteria relevant to co‑ops; setting up care co‑operative support hubs and creating a national strategic platform for social care co-operation.
“The researchers have found evidence that co-operatives and mutuals can help fix our broken model of social care,” said James Wright, policy and development lead at Co-operatives UK, “by putting those giving and receiving care ahead of distant investors. They are the future of care.”
Glenn Bowen, director of enterprise at Welsh co-op development agency Cwmpas, said: “Cwmpas has been promoting the social care co-op model in Wales for a number of years. This research has been important to provide more information on the current success stories and the challenges that exist to seeing more social care co-ops develop.
“It will help to further promote the model and break down some of the barriers that are preventing further growth in this area.”
Co-operatives UK is holding two sessions to further explore the research findings:
- A dedicated social care session at Co-op Congress – the co-operative sector’s annual conference – at the Eastside Rooms in Birmingham on 12‑13 June. Find out more and book tickets at: uk.coop/congress
- A webinar to explore the findings in more detail and ask questions, with report author Serena Vicario from the Centre for Health Service Studies at the University of Kent, on 23 June at 2‑3.30pm. Sign up for the webinar here.
Ahead of these sessions, anyone with ideas or questions about the research, is invited to get in touch with Co-operatives UK by emailing [email protected]
