Why Social Care Funding Needs Urgent Action
The King's Fund's latest Social Care 360 review reveals a worrying but familiar cycle: when social care isn’t properly funded, the people who need it most pay the price. It’s a pattern we’ve seen play out time and time again - rising costs put pressure on providers, local authorities struggle to keep up, and access to support shrinks. This impact on budgets has very real detrimental effects - care workers, managers, and organisations are stretched far too thin. While recent investment has helped, without a long-term funding plan, the sector risks slipping back into crisis mode.
At Flourish, we will always advocate for a social care system that works for everyone, because we know it’s possible - one where care workers are valued, providers are supported, and the people relying on care services get the help they need, when they need it. The Social Care 360 review highlights just how fragile the current system is and why urgent action is needed to secure its future.
The Impact of Unfunded Costs on Social Care
One of the key findings of the report is that the introduction of the National Living Wage in 2016 - while a positive step for care workers - wasn’t backed up with sufficient funding. This meant that providers had to absorb rising costs, leading to higher fees for local authorities and, ultimately, a reduction in the number of people receiving care. Between 2015/16 and 2021/22, the number of individuals receiving long-term care fell from 873,000 to 818,000, with older people particularly affected.
For years, the review shows, local authorities have worked hard to stretch their budgets, prioritising social care despite financial constraints. But, without enough funding, they’ve had to make difficult choices, leading to tighter eligibility criteria and fewer people getting the support they need.
It was only in 2023/24, thanks to a significant boost in local authority spending power, that we saw an increase in the number of people receiving care. But that progress, while positive, is fragile, and without continued investment, we risk sliding backwards again.
A Workforce Under Pressure
The social care workforce is the backbone of the sector, yet recruitment and retention remain significant challenges. While median care worker pay has increased by 17% in real terms since 2016, it still lags behind other sectors. Many workers can earn similar wages in retail or hospitality, and NHS roles often offer better pay. It’s no surprise, then, that social care vacancy rates remain stubbornly high.
Recent changes to immigration policies have also impacted the workforce. In February 2022, overseas care workers were able to take up UK roles under a sponsored visa scheme, which helped ease shortages. But new visa regulations introduced in December 2023 have now slowed this pipeline of workers, raising concerns about future staffing levels.
We need a workforce strategy that ensures social care is an attractive, sustainable career choice. That means fair pay, career development opportunities, and the recognition care workers deserve.
Growing Demand, Uneven Support
Demand for social care is rising—particularly among working-age adults, where requests for support have increased by 31% since 2015/16. And yet, access to care remains deeply uneven, with financial means and postcode lotteries determining the level of support people receive. Despite social care spending rising to £32 billion, it still isn’t enough to meet demand, and gaps in provision continue to widen.
As Kathryn Smith, CEO of the Social Care Institute for Excellence, puts it: "The report lays bare the stark reality of unmet need in adult social care. With 2.1 million new requests for support in 2023/24, it is clear that demand is rising rapidly."
The Case for Sustainable Funding
The Local Government Association, the Royal College of Nursing, and leading providers all agree—without long-term investment, social care will remain at crisis point. The system needs sustainable funding that keeps pace with rising demand, ensures fair pay for care workers, and enables providers to offer high-quality, consistent support.
Councils have done what they can, but as Cllr David Fothergill from the LGA warns: "Without immediate government action, care services will remain at risk, with devastating consequences for individuals and families who rely on them."
At Flourish, we work every day to support and upskill the social care workforce because we know that high-quality care transforms lives. But training and development can only go so far without the right investment in place.
The government has an opportunity to break this cycle for good—by committing to long-term, sustainable funding that gives the sector the stability it needs. The alternative? More uncertainty, more workforce shortages, and more people left without the care they deserve.
The choice is clear. Let’s make the right one.
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