Think Tank: Independent Providers of Adult Social Care to Face £2.8 Billion Cost Increase
Charities have expressed concerns that the government’s commitment of £600 million in funding for social care is insufficient.
A recent analysis by the Nuffield Trust warns that thousands of independent adult social care providers will face a substantial increase in costs of £2.8 billion in the upcoming financial year due to Budget measures.
The think tank highlighted the risk of many private and non-profit social care firms going bankrupt, which could disrupt or end care for thousands of older individuals.
This increase in costs is primarily attributed to the rise in employer national insurance contributions and minimum wage hikes, totaling £2.8 billion for affected companies.
Furthermore, the Nuffield Trust emphasized that the government’s pledge of £600 million in new grant funding falls short of addressing the escalating financial pressures on the social care sector.
Local authorities are projected to overspend on social care by approximately £564 million in the current financial year, with a significant percentage expected to tap into reserves to cover the costs.
The Health Foundation estimates that an additional £1 billion will be required next year to meet the growing demand for adult social care.
In light of these challenges, the Nuffield Trust and the Care Provider Alliance have called for urgent and substantial financial support to prevent potential market collapse within the adult care sector.
It is imperative for the government to take immediate action to address these financial challenges and ensure the sustainability of adult social care services.
