Care England warns that social care sector is “on a knife-edge” without urgent government action to support workforce.

Care England, the leading voice for independent adult social care providers, has responded to Skills for Care’s State of the Adult Social Care Sector and Workforce in England 2025 report.

The report shows that, while the workforce continues to grow, with filled posts up 3.4% and vacancies falling to pre-pandemic levels, this progress is fragile, as they are still three times the vacancy rate of the whole UK job market. The sector’s economic contribution increased by 12.2% to £77.8 billion, demonstrating that investment in the social care workforce not only supports people to live well but also delivers substantial economic benefits for wider society.

However, the report reveals growing instability in the labour market. The number of international recruits halved in the past year, a drop of 55,000, while the number of British nationals working in care fell by 30,000. With fewer people entering the country, more domestic workers leaving the sector, and the displaced worker pool becoming quickly exhausted, the pipeline of new entrants is drying up.

As current visas begin to expire and questions remain about renewal routes, providers are bracing for a tightening labour market.

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

“This report tells the story of a sector that is holding the line, but only just. The international recruits who helped plug the gaps are no longer arriving in the same numbers, and we’re losing too many home-grown staff. With fewer people coming in, more leaving, and the domestic workforce shrinking, pressure is mounting. The storm clouds are already gathering, and unless action is taken now, providers will once again be forced to rely on costly agency cover; and the impending wave of pressure will bring with it greater instability and, ultimately, less consistency for the people we support.”

Skills for Care also reported that the median hourly rate for care workers was £11.00, around 56p above the National Living Wage (NLW) at the time. If that 56p differential remains consistent, the median wage would be expected to rise roughly 3.9% over the year, equating to over £1bn additional pressures on the sector, based on government and Low Pay Commission projections, costs that current funding settlements do not cover.

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

“These figures show how even small pay rises can tip a sector already on a knife-edge. Providers want to pay their staff fairly, they know how hard they work and how much they give, but they can’t do it without proper support. Every increase brings huge financial strain for services already stretched to their limits. Unless the government sets out a clear plan to meet these rising costs, providers will be pushed into making impossible choices, and the fragile stability we’ve worked so hard to rebuild will start to fall away.”

Care England is calling for the government to move beyond crisis management and deliver a long-term plan that treats adult social care as the national priority it is. With its significant contribution to the economy and a 1.6 million-strong workforce, the sector is too important to be left operating in perpetual uncertainty. Instead, it must be upheld, maintained, and valued as the foundation of national health, economic growth and prosperity. Policy decisions cannot be made in isolation or deferred until the next emergency.

Care England urges Government to:

• Reintroduce health & social care visa routes The new report demonstrates that overseas workers are not displacing domestic ones. International recruitment has been a vital stabiliser for the sector, and with the benefits of the Fair Pay Agreement still unknown and too far in the future to wait, limiting access to overseas workers risks undoing recent progress.
• Fund local authorities adequately to meet the National Living Wage increases within 2026/27 fee uplifts, ensuring that providers can sustain service delivery and workforce pay parity, attracting workers to a career in care.
• Provide dedicated funding to deliver the Employment Rights Bill, so new entitlements and protections can be implemented without placing additional financial strain on already stretched providers. Care England estimates that the £500m currently announced to fund the Fair Pay Agreement will only raise care worker wages by up to 15p per hour.
• Co-produce policy and embed social care at the heart of policymaking, recognising that every decision, within and beyond the Department of Health and Social Care, directly affects the workforce, the NHS, and the millions who rely on care.

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

“Social care is part of so many people’s lives; it’s the quiet force that helps families stay together, supports loved ones through difficult times, and gives people the dignity and independence they deserve. Yet too often, it’s only when the system begins to struggle that it’s noticed.

We can’t keep waiting for crisis to drive change. Social care deserves to be nurtured, planned for, and valued as the foundation of a compassionate and successful society. It’s time for Government to give this sector the attention, respect, and long-term commitment it has always deserved.”