Councils are raiding reserves and slashing non-statutory services to keep pace with a ‘precarious’ social care system, according to The King’s Fund.
The health charity’s latest Social Care 360 report reveals that total expenditure on social care by councils has hit £34.5bn—a 4.1% real-terms increase.
This increase is driven by higher provider fees and the number of people receiving long-term support jumping 3% from 859,000 to 889,000 between 2023/24 and 2024/25.
The King’s Fund reports that council-paid care fees rose in real terms: residential costs hit £1,823 weekly for working-age adults (up 3.6%) and £1,019 for older people (up 3.3%), while homecare rates reached £23.56 per hour (up 3%).
The Chartered Institute of Public Finance and Accounting (CIPFA) data shows usable council reserves fell by 4% in 2024/25 as external debt climbed 10%.
To bridge the gap, councils are cutting budgets for libraries, roads and waste disposal, yet 50% of social care authorities still anticipate needing emergency government bailouts within three years, according to a Local Government Association (LGA) survey.
Simon Bottery, Senior Fellow at The King’s Fund, warned that while more people are receiving vital care, the current trajectory is ‘not sustainable.’
‘We are long overdue a national conversation about how to properly reform social care so that it provides the support people need is organised and is funded in a way that does not put at risk other local authority services and their overall financial health,’ he added.
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