Care England, the leading voice for adult social care providers
in England, has expressed deep disappointment in the government's
Budget announcement, which overlooks the financial pressures
bearing down on the adult social care sector.
With a 6.7% increase in the National Living Wage (NLW) alongside
a 1.2% rise in Employer National Insurance contributions and a
cut to the Secondary Threshold to £5,000, the sector faces an
additional circa £2.4 billion funding hole to plug. This is no
small burden for a workforce of 1.59 million full time
equivalents, and a sector which relies on 50% of those
cared for to be funding via local authorities who have been
provided only £600 million in new grant funding for social
care, shared across both adult and children's services.
The announced new £600 million grant fails to come close to
bridging the gap, especially with a shortfall of a £4 billion
deficit identified in the Market Sustainability and
Improvement Fund (MSIF) analyses' conducted by Care England and
the Homecare Association in October. The MSIF and the recent NLW
and Employer's National Insurance (ENI) announcements leaves
adult social care underfunded by approximately £6.4 billion. Of
this amount, over £5 billion would need to be covered by local
authorities to maintain essential services.
The government's neglect to fund adult social care in the autumn
statement is concerning. Without the support needed, the social
care sector is in unprecedented danger; and as a result of this
decision, we are likely to see an increase in the number of
contracts handed back to local authorities by providers, closure
of services that are no longer viable, and the inability for some
care providers to sustain or move towards paying the real living
wage.
The new government has failed to prioritise adult social care yet
again, despite the clear evidence that a £1 investment in social
care yields a 175% return to local
communities, benefitting both the economy and the lives of
vulnerable citizens.
In stark contrast to the meagre provisions for adult social care,
this Budget includes:
- £22.6 billion for the NHS, with an additional £3.1 billion
for capital projects.
- £11.2 billion for education
- £2.4 billion for transportation and infrastructure
- £2.3 billion for school recruitment
- £1.8 billion for childcare
- £1.4 billion to rebuild schools
It is undeniable that adult social care remains low on the
agenda, and older and disabled people are clearly not a priority
for this government who is leaving them yet again in the shadows,
ignoring a sector in crisis. For a government that professes to
value local communities and local people, this continued neglect
of adult social care is nothing short of shameful.
Professor Martin Green, OBE, Chief Executive of Care England,
commented:
“Today's Budget is a glaring missed opportunity by a
government full of promises to make a real difference to adult
social care and establish a sustainable funding framework that
meets the gravity of our current crisis. The government's £600
million commitment to be shared between adult social care
and children's services is, unfortunately, a drop in the
ocean compared to the staggering £2.4 billion in rising costs
associated with wage increases and employer national insurance
contributions. When we see £22.6 billion directed towards the
NHS, it's disheartening that social care once again receives only
a fraction of the support it needs, despite its critical role in
easing NHS pressures
Adult social care is not simply a supplementary service but a
core component of our healthcare system enabling timely hospital
discharges and ensuring thousands receive safe, dignified care at
home or in their communities. Social care stands as a
solution to many challenges facing the NHS. Yet, this Budget and
this government fail to recognise its vital role. Without
immediate, adequate funding, the cost of inaction will be
devastating; delayed hospital discharges, overstretched
providers, and vulnerable people left without the care they
desperately need.
The reality is that without serious investment in adult
social care, the government is choosing short-term savings over
long-term stability. We needed a bold step forward, a signal that
adult social care matters to the fabric of our society. Instead,
today's announcement leaves the sector struggling to cover basic
costs, pushing it further toward a point where both capacity and
access will inevitably decline. If the government truly wants to
create a more resilient health and care system, it must support
social care with the same commitment it shows the NHS.”
Care England calls for an urgent revision of this Budget, a clear
re-commitment to the MSIF fund, and a sustained investment
strategy that addresses the immediate and long-term needs of
adult social care.
