What are the key challenges in aligning commissioner and provider perspectives on fair and sustainable funding?

Across the adult social care sector, one issue continues to surface time and time again: providers are not being paid in a way that reflects the true cost of delivering care. This isn’t a new problem. But it is becoming more acute.

As costs rise, workforce, energy, compliance, and operational overheads, many providers are finding that conversations with commissioners are becoming increasingly difficult. Not necessarily because there is disagreement on principle, but because there is a disconnect in how those conversations are being framed. Put simply, providers and commissioners are often not speaking the same language.

Local authorities are under significant pressure and a duty to “balance the books” whilst meeting demand and Care Act duties, managing constrained budgets, political expectations, and increasing demand. In response, they are turning to more structured, data-driven approaches to understand cost, but that is not the issue.

The challenge is that many providers are not equipped to present their costs in a way that aligns with how local authorities are analysing them which creates a gap.

Providers know their services are viable, safe, and delivering good outcomes. But when cost submissions are reviewed, they can appear inconsistent, difficult to benchmark, or out of line with what commissioners expect. This can lead to stalled negotiations, reduced uplifts, or in some cases, decisions that don’t reflect the realities of delivering care.

At the same time, providers themselves often lack visibility. It can be difficult to know whether their cost base is competitive and where they sit compared to peers and how commissioners are interpreting their data.  Without that clarity, conversations become reactive rather than strategic.

What we are seeing across the sector is not a lack of willingness to engage, but a lack of shared understanding which matters. Because without a common framework, it becomes almost impossible to have productive conversations about funding, sustainability, and the future of care provision.

This is the solution being demonstrated in an upcoming webinar on 13 May which will offer a focused solution to help understand the impact of:

• the current challenges providers are facing when engaging with commissioners
• why cost submissions are often misunderstood or misaligned
• how providers can better articulate their position
• and how a more consistent, structured approach can support stronger outcomes

The session is about a system unpacking a problem that many providers are dealing with every day and offering practical solution into how that can be addressed through past evidence.

If you are currently navigating difficult funding conversations, or simply want to better understand how to position your organisation in an increasingly complex environment, this system demonstration will be a valuable opportunity to step back and reflect.

Register for the webinar on 13 May here: