Social care providers 'facing impossible choices' in run-up to Budget
Leaders in the social care sector have warned that they can't afford to wait three years for final decisions on reform.
A new report has highlighted the ongoing strain faced by providers, with an annual survey revealing that organisations caring for around 128,000 people in England are feeling forced to close parts of their operations, hand back contracts to local authorities and even consider leaving the market entirely.
The top cost-pressure cited by nine out of 10 providers was workforce pressures, with the national living wage increase set to come into effect from April being identified as the biggest challenge. However, the authors of the report, learning disability charity Hft and Care England, have said that these pressures will have increased since the survey was conducted, as it took place before further challenges emerged from the October Budget, notably the planned increase in employers’ national insurance contributions (NICs).
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Hft and Care England are repeating their calls for the Government to either fully fund the increase or exempt care providers entirely, warning that delays are pushing more care providers out of the sector and leaving more people without the support they need. The report referred to previous analysis by the Nuffield Trust think tank, which suggested that the NICs hike could cost the adult social care sector more than £900 million this year, effectively wiping out the extra funds allocated to social care in the recent Budget.
Hft and Care England have expressed their willingness to collaborate with the independent commission on social care reform, led by Baroness Louise Casey, but they join others in urging for a plan to be presented by the end of this year, rather than waiting for a final report in 2028. Last week, Sir Andrew Dilnot, who had previously offered recommendations for reform, stated it is "completely unnecessary" to delay three years and that it is "perfectly feasible" for the Government to outline its intentions by the end of 2025.
Hft's chief executive, Steve Veevers, said: “The sector can ill afford a lengthy process to identify the solutions. The evidence is already clear.
"This year’s Sector Pulse Check is the next critical step for outlining clear, actionable solutions. It provides a detailed, up-to-date picture of the sector’s pressures and highlights urgent priorities such as workforce shortages, funding instability, and improved support for care workers.”
Professor Martin Green, chief executive of Care England, added: "We are ready to work alongside Baroness Casey and the Government to turn this commission into a catalyst for genuine change.
“But let’s be clear: the status quo is no longer an option. Every delay, every failure to act, pushes more care providers out of the sector and leaves more people without the support they need.”
He said providers are facing “impossible choices: absorbing unsustainable costs, changing their care models, cutting back on services, or shutting their doors entirely”.
National disability charity Sense supported the urgency for action, stating: "Every day that passes, is a day thousands of disabled people carry on bearing the brunt of our broken social care system".
David Fothergill, chairman of the Local Government Association’s community wellbeing board, echoed these concerns, saying: "Councils work incredibly hard to support people who draw on care and support, but adult social care has faced decades of underfunding, leaving services at breaking point."
In response to Liberal Democrat leader Sir Ed Davey's appeal in the Commons last week for accelerated reform efforts to make 2025 "the year we finally rise to the challenge of fixing care", Labour leader Sir Keir Starmer expressed his desire for "cross-party consensus" on resolving the crisis.
The Prime Minister highlighted the social care funding outlined in the Budget, mentioning the rise in carer’s allowance and additional support for disabled individuals. However, he stopped short of setting a fresh timetable for the commission's work, which is divided into two stages; the initial phase is due to report back to Sir Keir by mid-2026.
In response, a spokesperson from the Department of Health and Social Care stated: "We are taking action now by increasing funding to allow disabled people to stay in their homes, boosting the carers allowance, professionalising the workforce and making available up to £3.7 billion extra for social care authorities in 2025-26, including an £880 million increase in the social care grant."