CPA Action in Light of Budget

The Care Provider Alliance (CPA) today are sharing devastating findings from a comprehensive survey of over 1,180 care and support providers, revealing the social care sector faces potential collapse due to the combined impact of National Insurance changes and National Living Wage increases announced in the recent Budget. This has terrible consequences for the many hundreds of thousands of people aged 18 and over, who every day rely on good quality social care – be it residential care, supported living, extra-care, homecare or specialist support. This comes in the wake of independent research by the Nuffield Trust showing £2.8bn additional cost burden on care providers.

The survey, representing providers who care for hundreds of thousands of people across England, paints an alarming picture of a sector already stretched to breaking point now facing impossible choices. In the words of one provider:

“We have made it through a global pandemic and cost of living crisis only to be shut down by the very government that we hoped would save us. This is not just about business viability – it’s about the lives of hundreds of thousands of vulnerable people who rely on these essential services.”

Key findings show that without immediate government intervention:

• 73% will have to refuse new care packages from local authorities or the NHS
• 57% will hand back existing contracts to local authorities or the NHS
• 77% will have to draw on reserves
• 64% will have to make staff redundant
• 92% of providers who also serve people who pay for their own care will be forced to increase rates for self-funders.
• 22% are planning to close their businesses entirely.

The CPA is calling for the government to:

1. 1. Immediately exempt all care providers from the changes in employers’ National Insurance contributions.
2. 2. Ensure the National Living Wage increases for all care staff are fully funded.
3. 3. Create a sustainable long-term funding settlement for social care.

Without immediate government intervention, the collapse of care services will leave vulnerable people without essential support and place unprecedented pressure on the NHS.

Read the letter we sent to the Prime Minister here

You can read our letter, which has been sent to key members of the cabinet and opposition, every Parliamentarian, Local Authority and ICB here.

You can read the findings of our survey in full here.