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

Employment Vetting Officer

Essex County Council
£27003.0000 - £31768.0000 per annum
Employment Vetting OfficerPermanent, Full Time£27,003 - £31,768 per annum Location
Recuriter: Essex County Council

Workforce Real Time Co-ordinator

North Yorkshire Council
£29,064-£31,537
Do you have strong organisation and planning skills and a commitment to guide and support others? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Head of IT

YPO
£76,999 plus £3,000 car allowance and generous benefits package
As our new Head of IT, you will play a pivotal role in shaping the future of technology across the organisation. North Yorkshire
Recuriter: YPO

Hospital Lead Social Worker - WMF2872e

Westmorland and Furness Council
£47,181 £48,226
Would you like to work in an environment where you can make a real impact in people's lives on a day-to-day basis? Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Career Grade Social Worker WMF2874e

Westmorland and Furness Council
£38,220 - £44,075
We apply a career grade system to our Social Worker roles Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner