LGA responds to ADASS analysis of National Insurance and National Living Wage increases

Responding to analysis by the Association of Directors of Adult Social Services, which found National Insurance and National Living Wage increases will add an extra £1.8 billion to local councils bill for commissioning care and support, Cllr David Fothergill, social care spokesperson for the LGA said:

“Councils are facing unprecedented financial challenges, with the increases to employer National Insurance Contributions likely to add significant costs for councils and the wider sector. These pressures, compounded by inflation, demography and National Living Wage rises, are putting vital services at significant risk of collapse.

“Adult social care, which supports millions of people to live with dignity, is particularly exposed, with rising costs threatening provider failures, longer waits for care, and growing unmet needs. Councils are reporting the likelihood of further cuts to core services and severe strain on health and care systems, including redundancies and providers handing back contracts.

“The consequences of inaction will be leaving people without the support they need and further embedding a two-tier care system. Immediate Government funding is essential to protect these services and ensure councils can continue to fulfil their vital role in supporting communities.”