Winter Energy Woes: Protecting Care Homes Amid Rising Costs and Hidden Fees

As temperatures drop, care homes across the UK are bracing for another challenging winter. The combination of cold weather, soaring energy prices, and the geopolitical turbulence stemming from the Russia-Ukraine conflict has created a perfect storm. With the UK facing a gas shortage, and energy costs reaching record highs, care home operators are finding themselves in a precarious position. For an industry tasked with ensuring the health, warmth, and comfort of vulnerable residents, energy costs are not just an operational concern – they’re a matter of life and death.

But behind the headline-grabbing rise in energy prices lies a less visible, yet equally damaging, issue: broker mis-selling.

The Hidden Cost of Keeping Warm

Care homes, by necessity, have higher-than-average energy demands. This makes them particularly susceptible to exploitation by unscrupulous energy brokers. Many operators are unaware that their energy contracts may include hidden broker commissions, buried within per-kilowatt charges. These commissions, often tied to energy usage, grow as consumption increases – directly inflating energy bills at a time when every penny counts.

The lack of transparency in broker practices is a pressing issue. Care home owners often enter into contracts under the assumption that brokers are securing the best deals. In reality, many are unknowingly paying excessive fees that divert funds away from frontline care.

A Sector at Risk

The impact of these practices on the care industry is profound. Rising energy costs, compounded by hidden fees, strain already tight budgets. For many care homes, this could mean difficult trade-offs: reduced staffing, cuts to essential services, or even closure. These decisions come at a time when the sector is already under immense pressure due to post-pandemic recovery challenges and inflationary pressures.

Fighting Back: Empowerment Through Knowledge and a Call for Change

To combat this issue, there is a need for greater transparency, regulation and overall fairness in energy contracts. We at Business Energy Claims advocate for this and help companies across the UK including care homes impacted by mis-sold energy contracts in partnership with leading legal experts. 

The care industry cannot afford to remain in the dark about broker practices. Transparency in energy contracting is no longer a luxury – it’s a necessity. The financial health of care homes directly impacts their ability to deliver quality care to residents, and energy brokers must be held accountable for practices that undermine this mission.

As winter deepens and energy costs rise, the need for proactive, informed decision-making becomes ever more critical. We urge care home leaders to take action, educate themselves, and join the fight against broker mis-selling.

The choices made today will determine not only financial outcomes but also the quality of care provided to those who rely on it most. Let’s ensure that care homes can weather this storm with integrity, resilience, and fairness.

Sign up for our webinar here: Business Energy Claims Free Webinar.

Return to Insights