More than 850,000 people are given support in their own home.
About 80% of this is organised by councils, which normally outsource the work to care agencies.
The UKHCA, the umbrella group for care firms, asked more than 200 councils and care trusts for information about how much they paid for care.
The average fee was £16.12 an hour, although in some places it was below £13.
The UKHCA said the minimum price was £18.01, once factoring in the cost of running the services and the wages for the care worker was considered.
UKHCA policy and campaigns director Colin Angel accused councils of buying care "on the cheap".
Caroline Abrahams, of Age UK, said this was having a terrible impact on vulnerable older people.
"It's difficult not to feel anxious if you are an older person who relies on care at home."
Ian Hudspeth, of the Local Government Association said councils could not afford to pay more as the system was at "breaking point".
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