Decoding the Better Care Fund Policy Framework 2025-26: a summary for homecare providers

The Better Care Fund (BCF) is a key initiative for making joined-up health and social care a reality in the UK. As a homecare agency leader, it has important implications that are key to take into account when business planning - with the new policy framework for 2025-2026 recently published, this post breaks down the latest in plain English, so you can see what it means for you.

What is the Better Care Fund?

The BCF is a programme in England designed to integrate health and social care services, ensuring more coordinated and person-centred care. It pools funding from the NHS and local authorities to support initiatives that help people live independently and receive care closer to home.

The framework's objectives have a number of key themes that are helpful to know:

• Prevention: The drive for more preventative care is at the heart of the framework, meaning more emphasis on services that keep people independent and stop them needing more complex care (naturally making homecare an important pillar of delivery).
• Working together: The framework pushes for even closer working between different parts of the health and social care system.
• Person-centred care: The framework reinforces the need for solid assessments, care plans, and regular reviews.
• Technology: The BCF highlights the growing importance of data and digital tech.

All of this is in line with the government's overall drive for "a shift from sickness to prevention and from hospital to home", also reflected in the recently-announced independent commission into social care, which is due to report back in a few years. Here at Birdie, we've long been aligned with that vision - we actually call it 'the village of care', and you can find out more about what that means in this post.

Where does the money come from?

The Better Care Fund (BCF) is funded primarily by the NHS and local authorities, with contributions from:

1. NHS England – Provides the largest portion of the funding, allocated via Integrated Care Boards (ICBs).
2. Local Authorities – Contribute through their social care budgets.
3. Additional Government grants – Some specific grants, such as the Disabled Facilities Grant (DFG), are also pooled into the BCF to support local care initiatives.

Who gets the money, and how?

The BCF gets allocated through a series of processes:

1. Each local authority and NHS Integrated Care Board (ICB) must agree on a joint spending plan for their area. This plan is overseen by the Health and Wellbeing Board (HWB), which ensures that funding supports integration between health and social care.‍

2. Money is then used to commission services. Local authorities and NHS partners use the funding to commission services that help people stay independent and reduce reliance on hospital care. This can include domiciliary care, reablement services, home adaptations, and community health support.‍

3. Care providers can be contracted. Private and voluntary sector providers, including homecare agencies, may be commissioned to deliver services funded by the BCF. Contracts are usually awarded through local authority tenders, NHS frameworks, or direct agreements with ICBs.

What's new in the 2025-26 framework?

The 2025 to 2026 BCF policy framework emphasises:‍

1. Providing more care closer to home: Enhancing community-based services to reduce reliance on hospital care.‍
2. Increasing focus on prevention: Encouraging healthier lifestyles and early interventions to prevent health issues.‍
3. Harnessing digital technology: Using digital tools to transform care delivery and improve service efficiency.

This means a couple of key changes (among others):

1. Consolidation of funding streams. The Local Authority Better Care Grant has been established by merging the previous Improved Better Care Fund (iBCF) and the Adult Social Care Discharge Fund. This consolidation simplifies funding and provides local authorities with greater flexibility in allocating resources.
2. The NHS minimum contribution to adult social care is going up. It will be required to increase by at least 3.9% in each HWB area.
3. New goals for HWBs. The BCF will now require all HWBs to set local goals for maximum levels of unplanned hospital admissions, delayed hospital discharges and long-term care home admissions.‍

What does this mean for homecare, and what can I do about it?

For homecare businesses, the BCF can make a huge impact on your growth opportunities. The drive to support initiatives and services that keep people independent and out of hospital is perfectly aligned to the critical services that domiciliary care delivers.

But how do you make sure that your business is in the best place to benefit?

In short, you can position yourself to succeed by: getting involved in local planning, delivering services that tick the BCF boxes, and showing that your services are making an impact. Here are a few pointers that can help put that into action:

1. Read the framework: This blog gives you the gist, but read the full BCF Policy Framework 2025-26 here.
2. Review your services: See where you can better align with BCF priorities. Focus on services that prevent hospital admissions, support independent living, and – crucially – be able to prove the positive impact your services are having.
3. Get local: Connect with your local council, ICS, and other key players. Go to meetings and build relationships, and connect with the Better Care Exchange.
4. Take advantage of the opportunities that technology creates: Explore how technology can help you not only deliver quality and cost-effective services, but evidence your impact (tools such as Birdie's Q-Score can help you do this)

Suggested further reading from the Birdie team:

• Recruitment and retention worksheets
• Integrated Care Systems: what you need to know
• Winning council tenders [on-demand webinar]