Veterinary Accountants UK

Reducing Locum Costs Without Damaging Patient Care

Locum cover is a legitimate and necessary tool. Persistent, structural locum spend is something else: a recruitment or retention problem being funded at a premium, and it shows up in both profit and practice value.

  • Practice profitability
  • 5 minute read
  • Updated 3 August 2026
Veterinary financial planning desk with reports and stethoscope for the UK guide Reducing Locum Costs Without Damaging Patient Care

Work Out What It Is Actually Costing

Start by putting the number somewhere visible. Locum spend usually sits in a purchase ledger nominal and never appears in staffing discussions, which is why practices routinely underestimate it.

Express it as a percentage of total clinical payroll and track it monthly. A practice discovering that a fifth of its clinical capacity is bought at agency rates usually acts quickly.

Separate the Types of Locum Use

Absence cover
Holiday, sickness and parental leave. Unavoidable and worth budgeting for properly rather than treating as an overspend.
Vacancy cover
Filling an unfilled post. Legitimate short term and expensive if it runs for months, which it frequently does.
Structural cover
Locums used as permanent capacity because the rota was never resized. The most expensive category and the easiest to leave in place.
Out of hours
A separate decision about whether to provide, buy in or share cover, and one worth revisiting given the CMA remedies on out of hours contract notice periods.

What Reduces It

Recruitment that actually competes. If a post has been open for six months, the offer is the problem. Comparing the total annual cost of the locum cover against a more competitive permanent package usually makes the case on its own.

Retention, which is cheaper than recruitment in every practice. Rota predictability, out of hours expectations, CPD support and progression all cost less than agency margin.

Better nursing utilisation, which reduces the vet hours needed for the same clinical work.

Appointment structure that matches demand, so capacity is not bought to cover peaks that could be scheduled differently.

The Effect on Practice Value

A practice delivering its clinical work through locums is worth less than the same practice delivering it through a settled team. Buyers see transfer risk, and they price it. If a sale is anywhere on your horizon, reducing locum reliance is one of the highest return pieces of work available.

Written by Veterinary Accountants UK editorial team. Published 3 August 2026.

Last reviewed 3 August 2026. [REVIEWER DETAILS REQUIRED BEFORE PUBLICATION]

Frequently Asked Questions

Should we use an agency or engage locums directly?
Direct engagement avoids agency margin and takes more administration. It also puts the employment status question squarely on the practice, so it needs handling properly rather than informally.
Is a long-term locum a risk?
Potentially. A locum engaged regularly over a long period under practice direction raises an employment status question, and the exposure sits with the practice. It is worth reviewing before it is reviewed for you.

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