Written by Oliver Wakefield-Smith. Reviewed for accuracy against the Homecare Association's 2026/27 minimum-price report and Age UK's 2026 factsheets. Numbers verified 21 June 2026.
Agency vs Directly employed carer (PA): 2026 comparison
The headline cost difference is large. A 56-hour-a-week directly employed PA at £16/hr is about £900-£1,100/wk all-in; a managed agency live-in is £1,400-£1,800/wk[1]. The trade-off is the employer obligations.
Side-by-side
| Element | Agency | Directly employed PA |
|---|---|---|
| Hourly cost | £28-£35/hr | £14-£18/hr to PA |
| 56-hr week all-in | £1,400-£1,800 | £900-£1,100 |
| PAYE / NICs | Agency | Family (with payroll service) |
| Holiday / sick pay | Agency | Family |
| Insurance | Agency | Family (Employer's Liability) |
| Cover when carer ill | Agency sends replacement | Family arranges |
| CQC oversight | Yes | No (PA is not regulated) |
Payroll services families typically use
- PASS Payroll
- Penderels Trust
- Premier Care Support
Most councils signpost their preferred payroll service as part of a direct-payments package[26].
When agency wins
- Cover for illness matters more than headline cost.
- You want CQC oversight and a complaints route.
- Care plan is changing weekly.
When directly employed wins
- You have a council direct payment that handles payroll.
- You can absorb cover risk with family or a back-up carer.
- Care plan is stable.