Properly funded social care would power growth and unlock jobs, according to a report published today.

The ‘Carenomics’ report says the care sector’s role in creating economic value and supporting growth is often ignored.

But with an estimated 152,000 vacancies, the ‘fragmented and underfunded’ sector is currently ‘stifling’ the economy, according to the report by the Future Social Care Coalition (FSCC).

Four in five UK jobs pay better than those in social care, and care staff with more than five years’ experience earn just 7p per hour more than colleagues who have worked in the job for less than a year, the FSCC said.

The report argues that with increased investment and care workers recruited on better wages, more people aged 50-64 who are unable to work because of care responsibilities could return to the labour market.

Data in the report suggests that a 1% increase of people in this age bracket in work could boost GDP by around £5.7bn per year.

Employment opportunities for disabled people would also improve if they had sufficient care support, the report argues.

In 2022-23, £3.36bn of a £3.39bn carer’s allowance bill went to working age people, the FSCC said.

UNISON general secretary and joint FSCC chair Christina McAnea said: ‘A properly funded social care system should be the backbone of a thriving economy.

‘But the Government has allowed the sector to become underfunded and fragmented. It’s no wonder care staff are leaving for jobs where the pay and conditions are much better.

‘More money for social care must be an urgent priority for the next government. This would take the pressure off an overstretched NHS, allow people caring for relatives to find jobs, help reduce social inequality and increase tax revenue for the exchequer.’