Ellie Ames 22 November 2024

Social care providers ‘at risk of collapse’ amid £2.8bn costs rise

Social care providers ‘at risk of collapse’ amid £2.8bn costs rise image
Image: fizkes / Shutterstock.com

England’s adult social care sector faces extra costs of £2.8bn next year due to changes announced in last month’s Budget, new research has revealed.

Changes to employer national insurance contributions (ENICs) are set to cost the sector more than £940m next year, the Nuffield Trust found.

The national living wage increase will cost providers a further £1.85bn, according to the health and social care think-tank.

The Nuffield Trust warned that if councils were unable to pay social care providers higher fees, many small providers would be ‘at risk of collapse’.

The charity’s deputy director of policy, Natasha Curry, said: ‘Already fragile after a decade of cuts, runaway inflation and the effects of Covid-19, adult social care was in desperate need of relief.

‘But this was a Budget that gave with one hand and took away with the other.’

She warned that while the Government rightly wanted to reform social care, ‘there may be little left of it to reform’.

The chair of the Local Government Association’s community wellbeing board, David Fothergill, called on the Government to fully fund the national living wage and ENIC increases.

SIGN UP
For your free daily news bulletin
Highways jobs

School Crossing Patrol Officer

Essex County Council
Up to £13.4600 per hour
School Crossing Patrol Officer Chelmsford, Essex Part-Time, Temporary 7.5 hours per week, term-time only Up to 6 Months £13.46 PAYE / £17.24 Umbrella England, Essex, Chelmsford
Recuriter: Essex County Council

Deputy Team Manager - Older Adults Mental Health

Essex County Council
£48205 - £57988 per annum + Flexible Working, Hybrid Working
Interviews will be held in person at Rowan House, Colchester on 6th May 2026.The TeamWe are a committed team working with adults aged 65 years plus a England, Essex, Colchester
Recuriter: Essex County Council

Executive Director Place, Economy and Environment

West Northamptonshire Council
£151,368 – £161,559 (pay award pending)
West Northamptonshire is an ambitious, fast‑growing place with a bold vision for inclusive and sustainable growth. Northampton, Northamptonshire
Recuriter: West Northamptonshire Council

Assistant Director Adult Social Care Operations

Buckinghamshire Council
Circa £92,000
Are you a credible, values-driven leader with the operational grip to deliver change? Buckinghamshire
Recuriter: Buckinghamshire Council

Chief Executive

Thurrock Council
c. £200,000
Lead the change, shape the future. West Thurrock, Grays
Recuriter: Thurrock Council
Linkedin Banner