Social care is the heart of our communities
The importance of funding support for social care
It’s the helping hand for older people who need additional care, the lifeline for those with disabilities, and the support system for families who need a moment to breathe.
But right now, the adult social care sector is under a lot of pressure. Demand is rising, but the funding hasn’t been able to keep pace. The lack of funding has left care providers struggling to keep their services running, and the impact is being felt by the people who rely on them most.
Why funding for adult social care matters
Social care isn’t a luxury – it’s essential and makes a huge difference to the people who depend on it. It helps people live with dignity and hold on to the independence they value. But right now, the demand for care services is increasing while resources are being stretched thin. Local authorities are facing tight budgets, and providers are being asked to do more with less. This means fewer staff, which leads to longer wait times, and ultimately fewer people being able to receive the care they need to live well every day.
The Care Policy and Evaluation Centre predicts that the number of people needing local authority-funded care will rise from around 520,000 in 2022 to over 750,000 by 2042[1]. To meet this demand, the care sector will need an extra £9.1 billion by 2034/35[2]. Meanwhile, The King’s Fund reports that over two million requests for adult social care support were made in 2022/23, but almost one-third of these requests were given no help[3].
Sustainable funding is key to helping care homes, hospices and community services prepare for the future and keep delivering quality care. Without it, they can’t invest in training, advancing technology, or improving facilities. And when providers are continuously put in this position and forced to cut corners, the quality of care suffers. For people who rely on care, that might mean rushed appointments or missed visits altogether. Suddenly the independence that they value from this support slips away.
Professor Martin Green OBE, Chief Executive of Care England, shared his views on the scale of the challenge:
“The figure we need to get social care on a secure and sustainable footing is about £10 billion. These are significant amounts of money, but not so significant when you consider that the Chancellor has found £29.billion for the NHS. It would have been much better had she found £10 billion for social care and then given a smaller amount for the NHS.
In terms of the impact this is having on businesses. This is huge. Because we’ve been underfunded for years, and so we need, not only money to keep pace with all these new cost increases, but if we look back over many years, we’ve been underfunded. So, this is yet another financial shock on top of the ones we’ve already had through years of underfunding.
We had a cost of care exercise done by local authorities some years ago to prepare us for the DILCOT proposal. At the time it showed that there was about a £3 billion gap and that was before increases in minimum wage, before the NI contributions, before the shocks we had around energy costs and other utilities
The human cost of social care funding gaps
Behind every statistic is a person. Someone’s parent, child, or friend. And when funding falls short, families often try to step in to fill the gap – but that’s not always possible. As a result, all parties are stressed and their mental and physical health suffers. To put it simply, communities don’t feel supported.
The same goes for care professionals, who are also feeling the strain. Many people enter this industry with such passion for the job, but without the right resources, burnout poses a real risk.
Keeping staff in the care sector is also a challenge. Across UK jobs, the average turnover rate is 15%. In care, it’s more than double at 31%.[4] This creates a cycle of instability that affects everyone.
The Health Foundation says that improving pay and conditions to match NHS Band 3 would need £15.4 billion extra by 2034/35[5] – a clear sign that investing in the workforce is critical. And for families, the financial burden is a heavy weight to carry. The King’s Fund highlights that one in seven adults aged 65 plus are paying over, a whopping, £100,000 in lifetime care costs and even those eligible for public funding have still contributed over £3.5 billion towards their own care in 2022/23[6].
Social care reform: what must change
Experts agree that reform is long overdue. According to The King’s Fund and The Health Foundation, getting long-term investment in adult social care is the only way to create a system that works for today and tomorrow.
That means fair pay for care workers, better support for providers, and funding models that reflect the real cost of care.
Unfortunately, it was announced on 29 July 2024, that the planned reforms to cap care costs were cancelled[7], leaving millions alone to face the financial uncertainty. Without urgent action, councils will continue to face a severe financial pressure, and the sector will be left to struggle with the chronic shortages and rising unmet need.
Standing with the care sector
At Everywhen, we understand the challenges care providers face because we work alongside them every day. We know that protecting what matters most isn’t just about insurance – it’s about being part of the solution.
That’s why we’re committed to supporting the care sector with expert advice, practical guidance, and cover that gives real peace of mind.
Let’s talk
Get in touch with James Anscombe on 07967 850015
or email
james.anscombe@everywhen.co.uk
Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.
Everywhen is a trading name of Advisory Insurance Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 313250). Registered in England and Wales, Company No. 4043759. Registered address: 2 Minster Court, Mincing Lane, London, EC3R 7PD.
[1] Adult social care funding pressures: 2023–35 – The Health Foundation
[2] Adult social care funding pressures: 2023–35 – The Health Foundation
[3] Social Care In A Nutshell | The King’s Fund
[4] Stemming the tide: retaining the social care workforce | The Health Foundation
[5] Adult social care funding pressures: 2023–35 – The Health Foundation
[6] Social Care In A Nutshell | The King’s Fund
[7] Introducing a cap on care costs – House of Commons Library