Care England Responds: Budget Neglects Adult Social Care Needs Amid Mounting Funding Crisis

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.