12 Oct 2021
by Carole Broughton

Funding for adult social care likely to remain an issue for years to come

The £5.4 billion of funding the government is providing over the next three years to help roll out adult social care reforms in England is unlikely to be sufficient to deliver its full ambitions, according to a 2021 'green budget' on government finances by the Institute for Fiscal Studies.

The research says by the second half of the 2020s, these reforms could require up to an additional £5 billion every year. The proposals leave unaddressed low pay levels for social care workers, and highly stringent needs assessments.  Tackling these is likely to cost billions more per year, with adult social care remaining a financial headache for councils and the Chancellor for years to come.

The report suggests tax increases could be needed in the future to meet funding deficits, in addition to the rise in National Insurance already announced.

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Authors

Carole Broughton

Carole Broughton

Information Officer, Homecare Association