How Much Does It Cost to Start a Care Agency in the UK?
Setting up a care agency in the UK can cost between £4,000 and £15,000, depending on your setup, staffing and compliance requirements. While this is a general guideline, your exact costs will vary based on the type of care service you intend to provide, the size of your organisation and your CQC registration requirements.
Having a clear understanding of these costs from the outset will enable you to budget effectively, avoid unnecessary expenses and set your care agency up for long-term success.
Key Budget Considerations
The Type of Care You’ll Provide
The type of care you plan to provide has one of the biggest impacts on your start-up costs.
Specialist care services, such as support for people with dementia or complex needs, require carers with advanced training, specialist equipment and comprehensive insurance — all of which increase your start-up costs.
If you’re providing more general home or domiciliary care, your costs may be lower, but staffing and training will still be your biggest expense.
Staffing Costs
Staffing is typically the most significant expense when starting a care agency. Consider:
How many staff members you’ll employ initially
Whether you’ll offer permanent, part-time or zero-hour contracts
Employer costs such as National Insurance, holiday pay and pensions
It’s also wise to factor in recruitment and induction costs, especially if you’re hiring multiple carers before you begin trading.
Employee Qualifications
The experience and qualifications of your care staff will directly affect your wage bill.
While senior carers, nurses and registered managers command higher salaries, they also bring expertise that strengthens both your compliance position and the quality of your care.
If you need support with sourcing skilled care professionals, Affinity Care Recruitment can help match you with experienced staff across the UK.
Equipment Requirements
The right tools and equipment are essential for delivering safe, effective care. Your start-up list may include:
Medical and mobility aids (hoists, wheelchairs, walking frames)
Personal protective equipment (PPE)
First aid kits and clinical waste bins
IT systems for rostering, record-keeping and communication
You may also need to budget for office furniture, software licences and digital care management systems if you plan to operate from a physical base.
Service User Needs
The level of care that clients require influences every care agency’s costs.
Some service users may only require short daily visits for help with meal preparation or medication reminders, while others may need round-the-clock support, including assistance with mobility and personal care.
The more complex the care package, the higher your staffing levels, and therefore your operating costs, will need to be.
Funding Sources
Consider how your business will generate income.
Will you work with NHS-funded clients, local authority placements or private clients who pay for their own care?
While publicly funded clients often provide stable, long-term contracts, they come with fixed rates and strict regulations. While private clients offer greater flexibility in pricing, they may require more investment in marketing to maintain a steady client base.
How Much Does CQC Registration Cost?
Before your agency can start operating, it must be registered with the Care Quality Commission (CQC). Registration fees are included in your annual CQC fees and vary depending on your service type and size.
Two key factors determine your fees:
Type of service provided – for example, domiciliary care, nursing, or supported living
Scale of your service – the number of locations and service users you support
These fees cover your initial registration, ongoing inspections and monitoring by the CQC.
For a full breakdown of costs, read our related article: How Much Does CQC Registration Cost?
Other Start-Up Expenses to Budget For
When calculating how much it costs to start a care agency, don’t overlook these important areas:
Insurance: You’ll need public liability, employer’s liability, and professional indemnity cover.
Policies and procedures: Purchasing or writing compliant policies that meet CQC standards.
Training: Mandatory training in safeguarding, first aid, infection control and more.
Marketing and website: Creating your website, branding, and local advertising.
Consultancy support: Hiring CQC specialists or business consultants to ensure your application meets regulatory standards.
Investing in the right preparation and expert advice can save time, money, and stress later in the process.
How to Reduce Costs When Starting Your Care Agency
Starting a care agency doesn’t have to be overwhelming. You can reduce your setup costs by:
Using digital care management tools to save time and reduce paperwork
Outsourcing HR, payroll or compliance tasks to experts
Applying for local business grants or support programmes
Starting small — focusing on one service area before expanding
These small decisions can make your start-up more efficient and sustainable from day one.
CQC Registration Made Simple
Start your care business with confidence. Our expert consultants, who proudly hold a 100% success rate in CQC registration for our clients, are here to guide you every step of the way.
With us, your journey to a fully compliant and thriving care business is stress-free and straightforward.
