Employee ownership trusts (EOTs) are reshaping the future of the care sector - not only in the UK but also across North America. Recent landmark transitions at Taproot Community Support Services in Canada and Consumer Direct Care Network in the US show why more care business owners, especially those planning succession or exit, should consider this model as a resilient, people-centred alternative to traditional sale routes.

In British Columbia, Taproot has become Canada’s largest EOT, transferring ownership to 750 employees who support adults with disabilities across three provinces. Meanwhile, Consumer Direct Care Network has transferred over 30% of ownership to its 135,000 home health care workers through a similar trust structure.

Employee ownership (EO) is a succession model where employees gain a meaningful stake and share in a company’s long-term success. The most common UK structure is the Employee Ownership Trust (EOT), which allows owners to sell part or all of a business to employees in a tax-advantaged way while preserving legacy, values, and independence.

Instead of individual staff buying shares, a trust holds ownership on behalf of all eligible employees. Staff benefit through profit-sharing and a stronger voice in governance.

Introduced in the UK in 2014 with generous tax incentives, EOTs have grown rapidly: from just 150 employee-owned businesses in 2014 to over 2,200 by the end of 2024. That’s a fifteen-fold increase, representing 12% of all private company transactions. The model has since spread abroad, with the US adopting similar legislation and Canada launching its own framework in 2023, including a £10m capital gains exemption for qualifying sales.

The UK care sector already has a standout case: Shaw Healthcare, one of the country’s largest employee-owned companies. Shaw transitioned in 2020 and now has 3,300 employee owners across 64 care services. In 2024, it was named Employee-Owned Business of the Year.

Results since employee ownership:

Shaw’s success mirrors wider trends. In 2024, the UK’s top 50 employee-owned companies generated £16.01 billion in sales and employed 125,000 people. Two care providers - Shaw and Be Caring - feature in this group, proving the model works at scale.

Research by Care England and the Employee Ownership Association highlights why EOTs are especially relevant to care. Nearly a third of care providers have considered exiting the market for three years running. Employee ownership offers a succession route that keeps services local and stable while tackling the sector’s chronic workforce challenges.

The sector faces a perfect storm: rising workforce costs, limited funding uplifts, and staff turnover at 24.8% - almost three times higher than many sectors. EOTs address these issues by prioritising workforce investment and engagement.

Key benefits for employees include:

In a people-driven sector like care, it’s only right that those who dedicate themselves to supporting society’s most vulnerable are valued and rewarded in a way that truly matters.

Most importantly, employee ownership boosts productivity by 8-12% through stronger engagement and discretionary effort. In a labour-intensive industry, this directly improves care quality, as workforce wellbeing and retention are major drivers of standards.

Employee ownership is no longer niche. Well-known brands such as The Entertainer, Lush, and Riverford Organics have adopted EOT structures, citing culture, sustainability, and values as key drivers.

For care providers, the timing is critical. Traditional succession routes - such as sales to private equity - often prioritise profit extraction over care quality and workforce investment. By contrast, EOTs protect culture, root businesses in communities, and ensure sustainability. As one employee-owned provider told Care England:

For care owners exploring succession, employee ownership deserves serious consideration. It combines attractive tax incentives - complete Capital Gains Tax exemption for qualifying owners - with business continuity and values preservation.

That said, it isn’t for everyone. Companies need stable cash flows to fund the transition, and success depends on genuine commitment to staff voice and engagement. The model works best where owners care about legacy as much as financial returns.

As more care providers approach succession decisions, EOTs offer a route that benefits owners, employees, and ultimately, the people who depend on quality care. The message is clear: begin conversations early, seek independent guidance, and stay open to models that put sustainability and the workforce at their core.

Employee ownership has proven its power - the next wave of care businesses would do well to embrace it.