Social care overspend is at highest level for over a decade at £774 million

Local authority budgets for social care were overstretched by £774 million last year to meet the legal duty to provide care and support, which are the highest overspends in a decade, according to the annual survey from the Association of Directors of Adult Social Services (ADASS).

The survey also found that social care spending aimed at preventing people’s health and wellbeing from deteriorating has been reduced by over 10% this year, as leaders are forced to prioritise immediate needs and support people in crisis.

Despite the government’s aim to shift health and care from hospitals to the community, the results show that this will be hard to achieve unless adult social care is prioritised.

Social care leaders argue that, as they are well-versed in delivering support at the community level, they should be meaningfully involved in decisions about where and how resources for neighbourhood health and care are allocated.

They add that councils are also likely to further tighten the eligibility criteria for social care, so they can fulfil their legal obligations, leaving very little room for preventative measures that would likely save the state money in the long term and, most importantly, improve outcomes for people.

NHS pressure is being heaped on social care

Spending pressures include an increase in the size of people’s care packages, indicating the growing cost of providing complex care as people live longer but often with multiple illnesses, conditions and disabilities.

Many of these individuals would previously have had their care funded free of charge through an NHS budget known as Continuing Healthcare (CHC). Data shows a postcode lottery for CHC funding, with people being less likely to be successful in obtaining CHC support depending on where they live in the country.

The trend of care workers being increasingly asked to carry out health tasks that would typically be covered by NHS staff continues, despite this often being unfunded. A staggering 100% of those Directors surveyed believe that increased pressure on the NHS will, in turn, increase pressures on adult social care in the following year.

Jess McGregor, ADASS President and Director of Adult Social Care in Camden, said: “The maths simply doesn’t add up – more people are coming to councils for help and their care is complex and costly, which means we don’t have funds left to provide the early support and prevention that would stop people’s health from deteriorating and help them avoid spiralling into crisis, where they frequently end up in hospital.”

Costs not covered in the Spending Review

The Government has not accounted for the increase in costs in the latest Spending Review. Social care is expected to receive up to £4 billion in additional funding by 2028/29 (compared to 2025/26). However, uncertainty remains regarding what this amount covers, including the potential need to use it for measures such as a much-needed but costly Fair Pay Agreement for care workers.

It comes after costly increases in employers’ national insurance contributions and the national living wage, as well as inflation, which have driven up the cost of care. It also assumes that every council will increase council tax by 5% to fund that additional spending.

Ms McGregor added: “We shouldn’t have to choose between helping people with complex needs now and preventing others from getting unwell – we need to support people at both ends of the social care spectrum. But without more investment to keep people well and independent at home, we risk undermining the shift towards prevention and neighbourhood health that Wes Streeting, the NHS and this Government are rightly championing.”

Responses to the social care survey

Jon Sparkes OBE, chief executive of Mencap, said: “As this report shows, however, councils just don’t have the money, and neither do care providers or charities. The £774m overspend on adult social care budgets is further proof of the lack of funding necessary to meet our social care needs. And this figure doesn’t account for the recent rise in National Insurance Contributions or the National Living Wage, so this overspend is likely to be even higher next year.

“Ultimately, without proper Government funding, it will be people who rely on social care – such as people with a learning disability – who will feel the impact the most. Baroness Louise Casey’s independent commission into adult social care cannot come soon enough.”

Kathryn Marsden OBE, Chief Executive at the Social Care Institute for Excellence (SCIE), said: “The ADASS Spring Survey offers further evidence of a system under profound strain. When local authorities are forced to divert limited resources into crisis management, the opportunity to invest in preventative, early intervention is lost. This not only undermines outcomes for people who draw on care and support but also the Government’s own ambitions for both social care and the NHS.

“A sustainable health and care system relies on a rebalanced model—one that moves resources into community settings to enable support to be delivered earlier, closer to home, and in ways that promote independence. The Government’s Ten-Year Plan rightly looks to address this—but largely overlooks the essential role of social care.”

Dr Rhidian Hughes, Chief Executive of the Voluntary Organisations Disability Group (VODG), said: “Across the country there is a wealth of good practice, partnership and innovation delivered by councils, disabled people and third sector organisations, showing care and support at its very best.

‘Yet the latest survey of directors of adult social services once again highlights that the ability of councils to invest in early intervention, foster new ways of working and encourage innovation in social care is severely limited when up against successive years of central government underfunding and unsustainable overspends. As the report states, the numbers just do not add up.”

Dominic Carter, Carers Trust’s Director of Policy & Public Affairs, said: “This vital ADASS report shows how Government underfunding of prevention and social care spending are having a catastrophic impact on millions of unpaid carers. Three-quarters of local authority directors have seen an increase in the number of unpaid carers asking their cash-strapped councils for support. With huge gaps in social care provision forcing people to look after friends and family at home, it’s no wonder so many directors report that more and more carers are breaking down. Carers have been warning about this for years and the survey shows a lack of access to support is the main contributing factor.”

Alison Bloomer

Alison Bloomer is Editor of Learning Disability Today.

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