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1 Nov 2024

Adult Social Care Monthly Political and Media Round-Up: September 2024

Your round-up of the latest Parliamentary developments and top five trending stories dominating adult social care news in the month of October.

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Introduction

In this edition of Bridgehead Social Care's monthly news round-up we examine the adult social care sector's news coverage over the past month. 

Between 1 and 31 October, references to 'adult social care' appeared in 492 unique media articles across the UK, a figure 37 per cent higher than September's coverage statistics, which stood at 360 articles.  

For context, the chart below plots mentions of adult social care on a month-by-month basis over the past 12 months.

A bar graph showing the number of articles published each month from October 2023 to October 2024. The highest point is in April 2024, with approximately 600 articles, while other months vary, with a notable increase in February and March 2024.

Political Developments

A central focus of the media, including Sky News, The Guardian, The Independent and BBC News, as well as the political attention in the last week has been focused on the Autumn Budget delivered by Chancellor Rachel Reeves.

The headline decisions, including increasing taxes by £40 billion a year and changing debt rules to finance additional infrastructure spending have dominated the discussion following the Chancellor's hour at the dispatch box. However, comparatively little coverage has focused on the measures (and lack thereof) pertaining to adult social care.

A surprise for many in the Budget was the decision to increase the effective value of the Carer's Allowance by raising the earnings threshold in relation to the benefit. Additionally, an independent review into overpayments is set to be conducted to address this issue.

However, little attention, other than an a £600 million grant for the sector, was given to social care sector as a whole. The NHS received the lion's share of new government spending whilst the grant Reeves had announced represents just 1.5 per cent of the £38.6 billion councils have budgeted to spend on adults’ and children’s social care in 2024-25. 

Saffron Cordery, deputy chief executive for NHS Providers, welcomed the settlement for the NHS but warned: “Social care needs urgent attention too. That can can’t be kicked down the road any longer. An underfunded, overstretched social care sector needs urgent reform and more resources not just to give people the care they need but to help to ease mounting pressure across the NHS.”

Moreover, the sector will also be hit hard by the government’s rise in employer national insurance contributions, with the Liberal Democrats calling for social care to be exempted from the increase. The effect of the higher minimum wage and the national insurance changes is expected to cause an additional £2.4 billion funding hole that has to be plugged.

Given the immense funding challenge in social care already, further costs will likely adversely affect providers, local authorities and those in need of care, all of whom are already struggling with the costs of our existing care system. There is uncertainty and concern that the overriding aim of fixing the NHS and bringing waiting lists down, the clear priority of the Budget's £22 billion extra for the health service, cannot be achieved without tackling the delayed discharge of elderly patients caused by a shortage of available care. 

In other News

Coverage in October focused on several key recurring themes concerning the problems relating to local authorities struggling to maintain financial stability whilst coping with increasing demand for services, including adult social care. However, there was a marked increase in media attention around the issue of the National Care Service. Much of this relates to the proposed Scottish Government policy which has suffered setbacks with councils across Scotland withdrawing support for the measure. In the last week the policy appears to have been left for dead with the Scottish Greens deciding to oppose it. The policy has already been delayed by three years. The Labour Government will be hoping their own National Care Service encounters similar difficulties. 

Sky News reported further on the troubles of local government finances. The rising cost of social care and school transport is expected to cause a £54bn black hole in council funding across England without government help. The effect that ever-increasing demand for social care has on council budgets is clear with the Financial Times reporting that Hampshire County Council now spends 83 per cent of its budget on social care. More widely, England’s 317 councils sit in varying degrees of financial distress with grants from central to local government down more than a third in real terms compared with 2010.

Given that eight councils have gone bust since 2018 and this year an unprecedented 18 are receiving emergency financial assistance, the future of local government in England is uncertain, as is the sustained delivery of social care. 

In other news The Guardian reports that one in five care workers in England are now men, the highest level on record, according to new figures from Skills For Care. However, the average wage for a care worker remains low £11.58 an hour contributing to continued high turnover, with almost a quarter of staff leaving in the last year.

Meanwhile, the Institute for Fiscal Studies has published a new analysis of adult social care in England and the challenges facing the new Labour Government. Of particular note is the think tank's judgement of Labour's proposed policies and initiatives for the sector – such as the ‘Fair Cost of Care’ reforms and the new ‘Fair Pay Agreement’ aimed at raising fees for providers and wages for care workers, respectively.

The IFS finds that these will likely necessitate additional funding from the government. Without more detail on what these policies (particularly the Fair Pay Agreement) will entail, it is impossible to say how much more funding and how that could fit with Labour's tight spending plans for local government in social care. 

Sky News - Rising cost of social care and school transport to cause £54bn blackhole for councils

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Local councils in England are warning of a potential £54 billion funding deficit by 2030, largely due to escalating costs in adult social care, children’s services, and home-to-school transport.

These three areas will drive 83 per cent of the increased costs facing councils. A recent survey further indicates that up to 16 councils could face bankruptcy by 2026/27 without additional funding, potentially impacting over 16 million residents.

Failure to address these financial pressures could lead to a majority uncertainty over future local government operations and services.

Institute for Fiscal Studies - Adult social care in England: what next?

A healthcare professional in a white coat writes on a clipboard while an elderly woman sits in the background, looking on. The setting appears to be a medical or care facility.

Adult social care in England is under immense financial strain with access to publicly funded care remaining tightly restricted by means and needs tests. These challenges go beyond the cost of care caps.

Policy gaps persist in workforce support, service eligibility, and increasing demand from younger adults. Requests for care among individuals aged 18–64 have surged by 18 per cent since 2014–15, far outpacing population growth.

Meanwhile, tightened eligibility criteria for older adults have reduced the number receiving publicly funded care by ten per cent since 2014–15, even as the elderly population has grown. To keep pace with these rising demands and inflation, the OBR suggests an annual 3.1 per cent increase in adult social care spending over the next decade is needed.

The Guardian - Record number of men in care work in England as immigration eases jobs crisis

A group of smiling politicians seated in an audience. The focus is on three individuals: a woman with long red hair wearing a white blazer and green pants, and two other people on either side, one with short dark hair wearing a black and white outfit, and another in a blue suit. The background features other attendees, some clapping and smiling.

In England, men now make up 21 per cent of the care workforce, a record high for a sector traditionally dominated by women. The increase in male workers correlates with a rise in international recruitment, which has helped alleviate staffing shortages. 

However, wages remain low at an average of £11.58 per hour, only slightly above the national minimum wage, and turnover is high, with a quarter of staff leaving in the past year.

The GMB trade union advocates for fair pay agreements, which Labour’s proposed employment rights bill may address by allowing negotiations for better pay and conditions.

Financial Times - The English county facing the biggest financial ‘black hole’

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Despite being a relatively prosperous area, Hampshire County Council has seen its funding from central government cut by 46 per cent since 2011, while social care spending has increased dramatically, now taking up 83 per cent of its budget compared to 53 per cent in 2010–11. 

The council’s forecast deficit for 2025-26 has risen to £175 million, as costs in social care, special educational needs, and school transport continue to grow. 

The national picture is equally bleak. Across England, spending on social care has surged, growing from 53 per cent of council budgets in 2009-10 to 66 per cent in 2022-23. 

Home Care Insight - £600 million grant for social care announced in Autumn Budget

A woman in a navy suit speaks passionately at a podium in a parliamentary setting, flanked by two men. The audience appears engaged, with several members in the background.

In her 2024 Autumn Budget, Chancellor Rachel Reeves presented a plan centred on addressing economic stability and prioritising critical public services. However, for social care, which received minimal attention in the address, Reeves announced a £600 million grant aimed at bolstering support.

In terms of carer support, there was surprise at the Chancellor's announcement that the Carers' Allowance would be increased in generosity, now set to align with 16 hours per week at the National Living Wage, totaling over £10,000 annually.

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