Adult social care is teetering on the brink of collapse with a “crisis unfolding in real time”, a damning report warns today.
A survey of 200 providers by Care England and disability charity Hft found 90% said workforce costs were among their top three financial pressures.
Of those, an overwhelming 95% said Labour’s planned increase in the National Living Wage was their deepest concern.
Shortfalls in fee increases from local authorities mean most care organisations will have to absorb the cost, the charities said.
Care England chief executive Professor Martin Green said: “Providers face impossible choices: absorbing unsustainable costs, changing their care models, cutting back on services, or shutting their doors entirely.
“This isn’t just a warning, it’s a crisis unfolding in real time. Years of unrelenting financial strain and a workforce stretched to breaking point have left social care hanging by a thread.
“Without immediate intervention, the consequences will be devastating for those who rely on care every single day.”
Three in 10 providers surveyed said they had been forced to close parts of their organisations or hand back contracts to local authorities.
A third were considering leaving the market altogether, which could leave hundreds of thousands of people without support.
And almost four in 10 providers had also curbed investment into building future capacity for care, the survey found.
Increases in employer National Insurance contributions are also set to pile further pressure on the sector.
The charities are urging the Government to commit to a multi-year funding settlement for adult social care in this year’s Spending Review, which either funds the cost of changes to National Insurance of exempts care providers.
They also want a workforce plan which would bring care staff’s pay and conditions in line with NHS staff to make it a more attractive career.
Labour has also faced strong criticism for launching an independent commission on social care that is not expected to make its final recommendations until 2028.
Professor Green said Care England was “ready to work alongside Baroness Casey and the Government to turn this commission into a catalyst for genuine change”
But he added: “Carers deserve a workforce strategy that serves as a testament to their unwavering dedication – a blueprint for meaningful change that ensures they’re properly paid, given real opportunities for development, and recognised for their vital contribution to society.
“This requires not just funding but a cross-party commitment to implement transformative, long-term solutions for the sector.
“The Government talks of delivering ‘an NHS fit for the future,’ but let’s be clear: you cannot fix the NHS without fixing social care.
“The status quo is no longer an option. Every delay, every failure to act, pushes more care providers out of the sector and leaves more people without the support they need.”
Steve Veevers, chief executive of Hft, warned that care providers could “ill afford a lengthy process to identify the solutions”.
He said: “While the announced reforms show promise in improving coordination between health and social care, immediate action is crucial to stabilise the sector and ease the growing strain on care providers and the NHS.
“We urge the government to consult with Hft and other providers who have done the research and are ready to collaborate on practical, immediate measures.”
