Running a care home means balancing tight budgets while still delivering high-quality care. Staffing, utilities, compliance, and maintenance all add up quickly. One area often overlooked for savings is the phone system. Traditional lines can be expensive to maintain, inflexible, and ill-suited for the modern demands of care.
Switching to VoIP (Voice over Internet Protocol) telecoms changes that. By moving phone systems to the cloud and running them over the internet, care homes can cut costs significantly, without sacrificing reliability. In fact, they often gain better functionality at the same time.
So, where exactly do the savings come from, and how do they add up in a care environment? Let’s explore.
Key Takeaways
- VoIP reduces ongoing costs by eliminating expensive line rentals and lowering call charges.
- Hosted systems remove the need for costly on-site hardware and engineer visits.
- Scalability means care homes only pay for what they use, avoiding wasted spend.
The Foundation: Why Traditional Systems Are Costly
Conventional phone systems were built on copper lines and bulky on-site hardware. While reliable in their day, they come with significant costs.
- Line Rentals: Each additional line means extra monthly charges.
- Maintenance Contracts: Hardware requires regular servicing and occasional repairs.
- Call Charges: Long-distance or mobile calls can quickly inflate bills.
For care homes with dozens of staff and constant calls to families, doctors, and suppliers, these costs add up fast. The upcoming PSTN switch-off in 2025 also means these systems are becoming obsolete, making investment in them a poor long-term choice.
Where VoIP Delivers Savings
Lower Line and Call Costs
VoIP runs over the internet, so there’s no need to pay for traditional phone lines. Calls, especially long-distance or international, are far cheaper.
- Unlimited Lines: Multiple calls can run simultaneously without extra line rental.
- Inclusive Packages: Many VoIP providers offer free or bundled minutes.
- Cheaper Long-Distance: Significant savings for homes making frequent external calls.
One care home manager reported cutting monthly telecom bills by nearly 40% after moving to VoIP because line rentals and inflated call charges disappeared overnight.
No Expensive Hardware
Traditional PBX systems rely on physical equipment installed on-site. Repairs, upgrades, and engineer visits all come with costs. Hosted VoIP eliminates most of this.
- Cloud-Hosted: The system lives online, with minimal on-site hardware.
- Remote Updates: Features are upgraded automatically without expensive visits.
- Reduced Downtime: Less hardware means fewer breakdowns and lower repair costs.
This doesn’t just save money, it also saves time. Staff don’t need to wait for engineers to resolve simple issues.
Scalability and Flexibility
Care homes change constantly from having new wings open, resident numbers shift, and staffing needs vary. Traditional systems require expensive installations to add new lines. VoIP makes scaling simple.
- Add Lines Instantly: New staff members can be connected within minutes.
- Pay-as-You-Go: Homes only pay for what they use.
- Future-Proofing: Growth doesn’t require costly infrastructure changes.
This flexibility prevents overpaying for unused lines and avoids the upfront costs of expansion.
Reduced Admin and Training Costs
VoIP systems are easier to use and manage than traditional setups. That translates into less staff training and fewer admin hours wasted.
- User-Friendly Interfaces: Staff adapt quickly, reducing training costs.
- Centralised Management: Managers adjust settings themselves instead of paying engineers.
- Efficiency Gains: Less time wasted means indirect cost savings on staff hours.
One home found that simply being able to manage call routing in-house, rather than waiting for an engineer which saved hundreds of pounds each year, not to mention hours of wasted time.

Cost Savings Beyond the Bills
While direct savings are clear, there are also indirect financial benefits that add up.
- Better Family Communication: Happier families mean fewer complaints, which saves time and resources.
- Improved Staff Efficiency: Staff spend more time caring and less time managing calls, reducing overtime needs.
- Integration with Care Systems: Linking VoIP to digital records reduces duplication and errors, avoiding costly mistakes.
These improvements don’t always show up on the telecoms bill, but they contribute significantly to smoother, more cost-effective operations.
Addressing Common Concerns
Some care homes worry that switching to VoIP will require large upfront costs or cause disruption. In reality, the transition is usually straightforward and affordable.
- Low Setup Costs: Hosted VoIP requires minimal hardware, often just new handsets.
- Quick Deployment: Systems can often be installed and running within days.
- Reliable Performance: With business broadband, VoIP is as stable as traditional lines.
One care home that hesitated due to fears of disruption was surprised to find the switch happened in a single day, with staff trained and confident by the next morning.
Preparing for the Future of Telecoms in Care
The upcoming PSTN switch-off makes VoIP the only sustainable option. But it isn’t just about replacing old lines. it’s about embracing a system that supports modern care.
VoIP integrates with video calling, telehealth, and smart monitoring devices, all of which are becoming central to care delivery. By making the switch now, care homes not only save money but also future-proof their operations.
Conclusion
Switching to VoIP telecoms brings care homes significant cost savings by cutting line rentals, lowering call charges, reducing hardware maintenance, and scaling affordably. Beyond the bills, VoIP also delivers efficiency gains that improve staff productivity and family satisfaction.
At circle.cloud, we provide VoIP solutions tailored for care homes, helping managers save money while enhancing communication and efficiency. Learn more here: Care Homes Phone System.
Reach out to us: What telecom costs create the biggest strain on your care home, and how much could you save by switching to VoIP?
FAQs
How much can care homes save by switching to VoIP?
Savings vary, but many homes cut telecom bills by 30–50% thanks to lower line rentals, call charges, and maintenance costs.
Does VoIP require expensive new hardware?
No. Most systems are cloud-hosted, so only handsets or simple devices are needed.
Is VoIP reliable enough for care homes?
Yes. With business-grade broadband, VoIP is just as reliable as traditional lines and often more flexible.