Care England Responds to The King’s Fund Report on Social Care ‘Doom Loop’

Care England, the leading voice for adult social care in England, has issued a stark warning in response to The King’s Fund’s latest Social Care 360 report, which highlights a ‘doom loop’ in social care, where rising costs and insufficient funding are forcing providers to reduce the number of people receiving care, despite soaring demand.

The report underscores the growing financial strain on care providers, driven largely by increases in the National Living Wage (NLW) and employer costs. Care England warns that without urgent government intervention, the sector risks further contraction, leaving thousands without the care they need.

Professor Martin Green OBE, Chief Executive of Care England, said:

“The King’s Fund report paints a bleak but accurate picture of a social care sector at breaking point. While the increase in the National Living Wage was both necessary and well-deserved for care workers, it has not been fully funded by the Government. This has created an impossible situation for providers, who are being forced to choose between financial survival and maintaining the level of care that individuals and families rely on.”

Key Findings from Social Care 360:

· Between 2015/16 and 2023/24, the number of people receiving long-term care from local authorities fell by 14,000, despite a sharp increase in demand.

· Over the same period, care worker pay rose by 17% in real terms, while local authority fees paid to care providers increased by 33% for older people’s care homes and 18% for homecare.

· Despite these increases, many local authorities were forced to cut services to balance their budgets, reducing support for older people by 4.8%.

Professor Martin Green OBE continued:

“The Government’s failure to fully fund wage increases, alongside its decision to delay critical reforms, is forcing care providers into an impossible corner. The notion that the sector can simply absorb rising costs without additional support is not only unrealistic but fundamentally negligent. Cancelling planned reforms and instead commissioning another review, one that won’t report until 2028, shows a complete disregard for the urgency of this crisis. The social care system does not have the luxury of time”.

Care England is calling for immediate steps to stabilise the sector, including:

· Full funding for workforce pay increases to prevent further cuts in care provision.

· Protection from employer cost hikes, such as the rise in National Insurance.

· Urgent investment in local authority budgets to ensure they can meet the growing demand for care.

Professor Martin Green OBE concluded:

“This report lays bare the brutal reality of the social care funding crisis. The Government’s refusal to prioritise adult social care is not just short-sighted; it is actively contributing to the deepening collapse of the sector. Without urgent intervention, we will see a wave of provider closures, increasing unmet care needs, and more pressure on families and the NHS. The Government cannot continue to turn a blind eye. It must act now to break this ‘doom loop’ and give social care the investment it so desperately needs, because the cost of doing nothing is simply too high.”

Care England urges the Government to break the ‘doom loop’ by delivering the funding and reforms the sector desperately needs. Without immediate action, the crisis in adult social care will continue to escalate, with devastating consequences for those in need of care.