£600 million budget boost to social care

Local authorities will receive a £600 million grant to spend on social care, increasing local government budgets by an estimated 3.2%. However, this total is set to be split between adult and children’s services, leading experts including Professor Martin Green, chief executive of Care England to call it “a drop in the ocean.” 

There are also concerns that alongside a 1.2% increase in National Insurance contributions and a 6.7% rise in the National Living Wage, this funding risks being swallowed by rising care provider costs. “Care providers will also have to shoulder extra employer costs from national insurance changes and minimum wage increases, exacerbating the difficult financial position they are in” warned The King’s Fund.

Earlier this month the Guardian found that 1 in 4 councils across England could be at risk of bankruptcy in the next two years, with social care being the biggest pressure across the board. 

Speaking on X, Age UK stated that they hope the limited extra funding for social care will “help keep fragile provision from completely falling over.” But added “the endless wait for the far-reaching, fundamental reform & refinancing of social care badly needs goes on.”

In addition to social care spending Chancellor Rachel Reeves announced changes to Carers Allowance – the state benefit for unpaid carers who provide a minimum of 35 hours of care a week. From April 2025 carers can earn £45 more a week without losing their allowance, which is the largest increase to the earnings limit since Carer’s Allowance was introduced in 1976. 

However, unlike most state benefits which taper off as your earnings increase, a penny over the new threshold of £196 a week will see recipients lose their allowance in full. 

Ultimately, many social care leaders see the changes outlined by the Chancellor as a starting point to getting care to the millions of people in need across the UK. However adult social care needs to be seen as a core element of the UK’s healthcare system –  equal to the NHS and worthy of reform sooner rather than later.