A worrying statistic was announced following learning disability charity, Hft, and representative body, Care England’s latest industry survey – Sector Pulse Check – where three in ten care providers have indicated that they have had to close parts of their organisations, or hand back contracts to Local Authorities, owing to financial pressures, according to a report in LaingBuisson.

The survey found 90% of providers cited rising workforce costs as one of their top three cost-pressures, with 95% reporting increases in the national living wage as their deepest concern. This is due to the shortfalls in fee increases from local authorities to cover these costs – reported by 85% of providers. In addition to this, domestic recruitment continues to be a struggle, with 85% of providers reporting the biggest barrier to taking on staff is pay rates. International recruitment was the most frequently reported method for filling vacancies, with 40% employing this strategy, according to the Hft report.

Coupled with the October 2024 budget where National Insurance changes, and National Living Wage increases, alongside the rising workforce costs, funding instability, and sector pressures, is contributing to a perfect storm of challenges facing care providers.

Many adult and children’s services providers are asking the question: does the government really care about Care?

After the announcement that there would be another review into the state of social care – the Casey Review, which will not hear the outcome until 2028 – many operators and social care experts see the release date as a delay tactic; with several businesses unsure they will survive to see its conclusion.

With the spotlight on a sector suffering from chronic underfunding; an ageing population driving increased demands for its services; multiple previous reports attempting to drive reform in the care industry (the National Care Service, and the Dilnot Commission) both failed to drive any meaningful change, it is a sense of déjà vu for many care sector veterans.

HealthInvestor highlighted industry affiliate responses, particularly the Homecare Association who highlighted research conducted by the Care Providers Alliance suggesting 22% of care providers will close due to the NI and NLW increases. Despite concerns raised by leading industry figures, industry bodies, and history seemingly repeating itself, once again the care sector is being asked to do even more, with even less.

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