Care organisations, working with management consultancies, have cut spending on agency workers, according to figures released by procurer of temporary labour, de Poel.

de Poel reports firms have spent 42% less on temporary agency staff this year than they did last January.

Matthew Sanders, chief executive of de Poel, says: “As the largest unregulated industry in the UK, with limited visibility of how pay and charge rates are made up, it is not surprising to find massive over-spending on temporary agency recruitment where companies are managing their supply from in-house.

“Not only is it much more difficult for them to negotiate rates under these circumstances, but organisations are unlikely to have a system in place with a sophisticated, spend-reporting function.

“In our experience, rate standardisation and visibility of spend are the crucial first steps in reducing costs.”