The Arrival of the Post Pulse Series: Endangered Residential Care

This inaugural article marks the beginning of a series that will bring Care England & Hft’s 2024 Sector Pulse Check report to life, highlighting how its findings have a real, tangible impact on the sector. It explores in additional detail the key drivers of care home closures, including local authority fee uplifts and workforce shortages, compounded by increased regulatory pressures from the CQC, concluded by our recommendations for a brighter future in the adult social care sector. 

As such, it outlines crucial recommendations, including a long-term funding strategy, better pay and working conditions for care staff, and a robust workforce strategy. It also calls for structural reforms, such as easing recruitment restrictions and ensuring timely payments from local authorities. Without immediate action, the adult social care sector is on the verge of collapse, leaving vulnerable groups at severe risk.

The adult social care sector in England is teetering on the brink of crisis, burdened by financial strain, workforce shortages, and surging demand for services. As evidenced by Care England & Hft’s 2024 Sector Pulse Check, 3 in 10 providers were forced to close parts of their organisation or hand back contracts in 2024 as providers struggle to balance rising operational costs and the increasing need for care—particularly for an ageing population. Local authority fees often fail to cover the true cost of care, and policies such as the Fair Pay Agreement and Employers’ Rights Bill, while well-intentioned, are piling on additional financial pressure that could push providers over the edge, if not already, without sufficient government funding.

As reported by Skills for Care, the sector is also grappling with a severe shortage of workers, with 131,000 vacancies and growing recruitment challenges, worsened by restrictive visa policies and pay disparity with the NHS. The ageing population and the demand for more complex care services only add to the strain. On top of this, tightening regulations and market consolidation are forcing many smaller, independent care homes to close.

Whilst the government has increased funding in the recent budget, it’s simply not enough to cover the rising costs and prevent even more providers from exiting the market. The closures are having a devastating impact on vulnerable people, especially those relying on public funding, leading to disruptions in care and added stress for families.

Ultimately, the adult social care sector is on the edge of collapse without swift intervention, bound to place vulnerable groups of people at significant risk.

To read the full article, see here.