The adult social care sector in England is bracing for an unprecedented financial strain, with costs set to rise by £2.8 billion in 2024 due to measures introduced in last month’s Budget, according to research by the Nuffield Trust.
Key changes, including employer national insurance contributions (ENICs) and a rise in the national living wage, are projected to place significant pressure on already overstretched care providers.
The report highlights that the increase in ENICs alone will add £940 million to the sector’s expenses next year. Meanwhile, the national living wage hike will impose an additional £1.85 billion burden on care providers.
The think tank warns that many small social care providers are at risk of collapse if local councils fail to compensate for these increased costs. The situation could lead to widespread disruptions in care services for vulnerable adults.
Natasha Curry, deputy director of policy at the Nuffield Trust, emphasized the precarious state of adult social care, describing the sector as “already fragile” due to a decade of funding cuts, soaring inflation, and the lingering effects of the Covid-19 pandemic.
While the government aims to reform social care, Curry cautioned that “there may be little left of it to reform” if the financial challenges persist.
David Fothergill, chair of the Local Government Association’s Community Wellbeing Board, urged the government to fully fund the additional costs tied to the living wage and ENIC increases. Without decisive action, the viability of essential care services could be jeopardized.
As England’s adult social care sector confronts this escalating financial challenge, the need for immediate government support has never been more urgent. Failing to address these rising costs could lead to the collapse of vital services relied upon by millions of people across the country.
