Care England, the leading voice for adult social care providers
in England, offers a stark warning about the devastating impact
of the government's Budget measures, following the release of
findings from the Care Provider Alliance (CPA) survey. Care
England played a key role in the design and analysis of the
survey, which gathered evidence from 1,184 care providers,
painting a bleak picture of a sector on the brink of
collapse.
The CPA survey reveals an industry at breaking point, unable to
absorb the combined impact of Employers National Insurance
Contribution (ENIC) increases on top of the welcomed rise in the
National Living Wage (NLW). Without urgent government action,
care providers across the country are being forced into
impossible choices that will devastate lives for those in receipt
of social care, dismantle services, and intensify pressure on the
NHS.
Professor Martin Green OBE, Chief Executive of Care
England, said:
"Social care is the backbone of a compassionate society,
enabling millions to live with dignity and independence. Yet
these results expose an unbearable truth: providers are being
driven to close their doors, leaving vulnerable individuals and
families without the essential care they rely on due to
ill-considered approach to change ENI by central government.
Providers are not asking for special treatment; they are asking
for parity.
How can we justify exempting the public sector and the NHS
from the ENIC changes but expect social care providers, who
provide 70-80% of public social care, to absorb these
insurmountable costs on margins lower than the additional cost
incurred by the ENIC change?
This crisis is about real people. It's about an older person
left waiting for care that doesn't come, adults with disabilities
losing vital support, and a care worker having to leave a
profession they love because they can't make ends meet. We need
the government to wake up to the human cost of these policies
which directly impact their ability to implement strategies
around prevention, digitisation, reducing waiting lists, and
discharging people from hospital. The Government must take action
before it's too late."
Key Findings from the CPA Survey
-
95% of providers are deeply concerned about
the Budget's impact on their viability.
-
73% will need to refuse to accept new packages
of care from LAs or the NHS, while 57% will
need to hand back current contracts
-
64% will need to let staff go
-
86% will not be increasing wages of other
staff, thereby reducing salary differentials
-
22% planning to close their businesses
entirely.
The survey also reveals that many providers will halt critical
investments, including in staff training, digital transformation,
and environmental initiatives, further eroding the sector's
capacity and the government's ability to professionalise the
workforce, digitise records and decarbonise the sector.
The findings align with urgent warnings from the Association of
Directors of Adult Social Services (ADASS). ADASS President
Melanie described the ENIC increases as
"catastrophic," highlighting that councils already overstretched
by adult social care budgets will be unable to absorb the
additional costs. Care England shares this alarm and adds its
voice to the growing chorus of concern from providers, councils,
and sector leaders.
Professor Martin Green concluded:
"The message is crystal clear: We are watching the fabric of
our care system unravel in front of our eyes. If central
government fail to now act now, services will close, people will
go without care, families will be left to shoulder unbearable
burdens - and the NHS, already on its knees, will collapse under
the weight of unmet social care need. Every day of inaction
pushes providers to implement their exit strategies and scale
back services to point from which there may be no
return."
