EMBARGOED UNTIL 00.01 Monday 3 March 2025
The Homecare Association endorses the findings of The King's Fund's Social Care 360 report. This identifies a "doom loop" of rising wages, increased costs, stretched budgets, and less care available to those who need it.
Despite rising demand, local authorities are reducing the number of people they support. Those receiving long-term care declined from 873,000 in 2015/16 to 859,000 in 2023/24, with a 4.8% reduction in support for older people.
Dr Jane Townson OBE, CEO of the Homecare Association, said:
"Social care is in a destructive cycle where rising costs of employment lead to fewer people receiving the care they need. Unfunded increases in costs from Autumn Budget measures are forcing councils to reduce or cut yet more care services.
"Councils and providers are facing a double whammy, with further cost increases likely from the Employment Rights Bill and Fair Pay Agreement. Councils will have no choice but to slash more care and support services. Care providers will be caught between rising costs they cannot control and fixed prices from their main customers – local authorities and the NHS – that don't cover the cost of care. This isn't just about financial sustainability; it creates dangerous conditions where safety and quality are compromised, and sadly, sets the stage for labour exploitation and modern slavery in the care sector.
"People who need care will go without. Unmet need risks harm to individuals and places greater pressure on unpaid family carers. It also pushes more people into hospitals that are already overwhelmed."
The Homecare Association is calling for immediate government action:
- A minimum £2.8 billion emergency injection to address the homecare funding deficit
- Protection for the care sector from the impact of increased employer's National Insurance contributions
- A multi-year funding settlement rising to £18.4 billion by 2032/33 to meet future demand
- Implementation of a National Contract for Care with legally binding minimum fee rates that reflect the true cost of quality, sustainable care – at least £32.14 per hour in 2025-26
We urge the government to prevent a disastrous disruption in community care, harming older and disabled people, unpaid carers, and the NHS.
--ENDS--
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