Labour accused of either 'ignoring or not caring' about crisis in adult social care

Ministers have been accused of either “ignoring or not caring” about serious needs within the adult social care sector despite a risk of “widespread failure” among providers.

A stark analysis sent to the Government by leading voices in the sector has warned high employment costs, too-low fee rates, and councils struggling to balance their books are all threatening its overall sustainability.

Collapses in social care provision could leave those in need without care, add to the responsibility on family carers, and increase pressure on NHS services, Care England and the Homecare Association said.

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The former is one of the largest representative bodies for independent adult social care providers in England, while the latter has 2,200 members across the UK.

They said that contrary to some perceptions around social care and private provision, most adult care and support services are state-funded in England.

In a letter to Health Secretary Wes Streeting, Deputy Prime Minister Angela Rayner and Chancellor Rachel Reeves, they said: “The sector has reached a tipping point. Local authorities and providers are unanimous in their views on this.

“Without urgent action, we face the risk of widespread failure of many providers, particularly those serving the state-funded market.”

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Their report on the state of the care market, by industry analysts LaingBuisson, concluded that up to 85 per cent of care provision comes from small and medium-sized businesses, and that the majority of care services are state-funded.

They found this to be the case for 57 per cent of care homes for older people, in 79 per cent of homecare, 89 per cent of care homes for younger adults, and 96 per cent of supported living.

For the minority of providers in older people’s residential care and homecare with private-only clients, these tend to be in affluent areas of southern England, the analysis said.

They said budget deficits are “so severe that even big companies relying on government funding are struggling”, and that the fact larger providers are struggling means the plight of smaller businesses is “even more serious”.

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The Government has repeatedly stated that it inherited a social care system “in crisis” but that it is determined to tackle the challenges and build a National Care Service.

Yesterday, Rachel Reeves said: “For our NHS to work effectively we need a social care system that works. That’s why, at the Budget, I put £600 million into investment in social care.

“That’s why we are introducing a fair pay agreement to improve recruitment and retention in our social care system to help carers looking after some of the most vulnerable people in society.”

But the letter authors said an immediate intervention from Government is needed in the form of at least £2.8 billion investment in the sector, a minimum price to be set to cover services in the form of a National Contract for Care services, and a multi-year funding settlement for social care to meet future demand.

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They repeated a call for care providers to be exempted from changes to employer’s national insurance contributions (NICs).

Research published last month estimated local authorities providing social care in England could face extra costs of an estimated £1.8 billion as a result of a rise in NICs and wage bills for providers.

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