Nuffield Trust ‘social care providers at risk of collapse’

“Will the autumn budget push the social care sector beyond breaking point?” the Nuffield Trust asks, and sadly the answer is a resounding yes.

As a leading social care provider and charity supporting people with learning disabilities, autism and mental health issues, we knew that when the chancellor announced an increase in National Insurance employer contributions in the autumn budget, it was going to have a significant impact on our costs. Looking at the National Insurance increase and the minimum wage increase, our costs next year will be at least £2m higher.

Through our networks at VODG, my fellow chief executives and I have been writing letters, meeting with relevant ministers and signing petitions to highlight the impact this budget decision is going to have across the sector. But thanks to the Nuffield Trust’s analysis of the data, the costs and the funding shortfall, we can clearly see that the situation is stark and the impending impact on the people we support is devastating.

There has been some talk that the government is considering a financial lifeline to the vital hospice sector amid fears that they will crumble in the face of this increase. The situation will be the same across the social care sector. If the government does not act urgently, we are facing the stark reality that services will be forced to close and vulnerable people will lose their homes.

We believe that ALL organisations who provide social care – hospices, care homes and supported living services – should be exempt from this increase.

The charity sector offers vital social care services and reduces the burden on the struggling NHS. Without a properly funded local government settlement or exemption from the increase, the system that is already creaking will be overwhelmed.

It is so important that we all put as much pressure as possible on the government to reconsider their stance. We’re continuing to lobby and fight for this change and funding because without it, it will be the people we support who will feel the biggest impact.

The government must act now!