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

Residential Assistant - ASC

Essex County Council
£25081.0000 - £25395.0000 per annum
Residential Assistant - ASCPermanent, Part Time£25,081 up to £25,395 per annum Location
Recuriter: Essex County Council

Consultant Social Worker - Frontline

Durham County Council
Grade 13 - £47,181 - £51,356
Are you an experienced children and families social worker keen to help develop the next generation of social workers in Durham?   Are you passionate Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 11 - £40,777 - £45,091
Applications are invited for a Social Worker within the Easington Locality Team. WHAT IS INVOLVED? Are you a compassionate and dedicated Social Work Durham
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£24,796 pro rata
Lunchtime Supervisor Grade 1, £24,796 pro rata Permanent, term time only, 10 hours per week 11.40 – 1.40 Monday to Friday Required from 11/05/2026   P Durham
Recuriter: Durham County Council

Specialist Autism Pathway Lead

Durham County Council
£42,057 - £51,048 plus TLR2B £5,869 and SEN1 £2,787
Specialist Autism Pathway Lead M5- UPR3 TLR2b with 1 SEN point- £42,057 - £51,048 plus TLR2B £5,869 and SEN1 £2,787 Permanent- Monday 8.45 – 4.30pm Tu Durham
Recuriter: Durham County Council
Linkedin Banner