Care England Responds: Survey Reveals Catastrophic Consequences of Budget Measures on Social Care

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 Williams 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.”