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‘Breaking point’: social care funding crisis revealed

‘Breaking point’: social care funding crisis revealed

Social care funding is in crisis, warn experts, as a report shows 81% of councils expect to overspend their adult social care budgets this year.

This is up from 72% in 2023/24, with an estimated overspend on adult social care at £564 million, according to a survey from the Association of Directors of Adult Social Care Services (ADASS) published this week.

ADASS president Melanie Williams described the financial situation as being ‘at breaking point’.

The report showed that 35% of councils – up from 19% in 2022 – were required to make further in-year savings on top of planned reductions, which were already at the highest level in eight years.

There is a projected increase to £1.4 billion in required savings by 2025/26, the report said.

Ms Williams said the increases in national insurance contributions (NIC) and national living wage (NLW) announced in the Autumn Budget last week would add further pressure.

She said the £600m investment into social care also announced in the Budget would do little to help, as the money would be needed to fund NIC and NLW rises.

‘This crisis is affecting councils up and down the country because budgets don’t reflect the cost of care and support for disabled and older people,’ said Ms Williams.

‘The government know that to fix the NHS, they must sort social care. We need reform, but right now, they must fully fund the increases in national living wage to keep the system afloat.’

Royal College of Nursing chief nursing officer Lynn Woolsey said: ‘Overstretched staff working in social care have been sounding the alarm for years, but successive governments have failed to listen.

‘When social care breaks down, some of the most vulnerable go without the care they need in the community.

‘This puts huge pressure on an already struggling NHS, unable to treat patients or discharge them fast enough. On a clinical and economic level, it makes no sense.’

She added: ‘The government wants to modernise the NHS, but you cannot do that by ignoring the crisis in social care.

‘Sustained investment, at the level required to meet need, is the only option. We cannot afford for this to be kicked down the road once again.’

The ADASS annual survey was sent to every director of adult social services in the 153 English councils with social care responsibilities and had a response rate of 86%.

Earlier this week an inquiry was launched into the ‘cost of inaction’ on adult social care reform.

This article was originally published by our sister title Healthcare Leader

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