"Unsustainable" social care top ups soar by over five-fold to a total £50bn in less than a decade as care providers rally in Westminster

EMBARGO: 00.01 Tuesday 25th February

• Since the Government introduced ring-fenced funding for social care to top up stretched council Budgets they have shelled out close to £50bn in real terms
• Costs have soared astronomically with Government top ups reaching £10bn a year - up five-fold in less than a decade
• Social care campaigners are holding an unprecedented rally outside Parliament today (25th February) to call on the Government to address the crisis, while the Liberal Democrats urge them to complete their social care review within the year
• The National Care Association said that the national insurance rise would “create unsustainable pressure on providers” and that the “future of social care is in the hands of this Government”

Since 2017/18 the Government has been topping up local authorities budgets to the tune of £47.1 billion to help pay for the burgeoning costs of social care with the yearly cash boost reaching close to £10 billion a year, research by the House of Commons Library commissioned by the Liberal Democrats has revealed.

It comes as campaigners converge on Westminster today to demonstrate over their concerns about the crisis in social care.

The research by the Library found that since the Government first began ring-fenced additional funding for local councils for social care in 2017/18, they have paid out close to £50 billion as councils struggle to stave off bankruptcy due to the spiralling cost of care.

Costs have risen astronomically over that time with top-ups hitting almost £10 billion for 2025/26. When the additional funding began in 2017/18 payments were just £1.8 billion in real terms. That is a more than five-fold increase in yearly care top-ups in less than a decade. 

The crisis in social care has devastating consequences across the whole health care system. Care England said last year that over 45% of hospital discharge delays were linked to social care with one in seven of all hospital beds currently being taken up by people who are medically fit to be discharged. 

Currently hospitals are experiencing bed occupancy levels of 96%, safe levels are those that are below 85%. This contributes to long delays in A&Es as people cannot be admitted into hospital as no beds are available with previous analysis suggesting that long A&E waits were linked to 50,000 deaths last year.

Previous Liberal Democrat research has also shown the pressure that council budgets are now under due to social care costs. Councils are having to pay a staggering £53,352 a year in nursing costs per pensioner, up more than £24,000 on 2015/16’s level of £29,276 a year - an 82% jump.

It means that social care can now account for up to 80% of council budgets, which have already had to make vast cuts to other council services. 

Recent research by the Local Government Association also found that investing in earlier preventative support in social care would improve people’s lives and save £3.17 for every pound spent. The report found potential savings to the public purse could reach £11.1 billion if preventative health and social care is scaled up across the country.

The Liberal Democrats have called on the Government to address the demonstrating care providers’ concerns today and commit to completing their review into social care within the year, not the three that it is currently scheduled for. This would help stabilise local government finances at a time they are in turmoil and get people the care they need much faster.

The Party has also said that the Government should scrap its national insurance rise for care providers, which could force many to cut back services or even close.

Liberal Democrat Health and Social Care spokesperson, Helen Morgan MP said:

“This is the first time that social care providers have ever felt the need to protest in this way. If that isn’t enough of a wake up call for the Government then I do not know what is. This situation is simply unsustainable.

“The sector has been forced to take unprecedented action as it faces collapse under the weight of spiralling costs and a self-defeating National Insurance rise.

“The neglect that the Conservative Party showed towards the sector was unforgivable and brought us to this point, but the Labour Government has done nothing but kick the can down the road on desperately needed reforms.

“It is not good enough for Ministers to say that social care reform will come in three years at the absolute earliest. Their review needs to be wrapped up within the year at the very latest. The sector and the people who rely on it simply cannot wait any longer.”

Executive Co-Chairman of the National Care Association, Nadra Ahmed CBE DL said:

“The vital role of social care in delivering essential support within communities is seldom recognised or valued within the broader health economy.

“Despite its critical contribution to public wellbeing, successive Governments have consistently failed to invest in social care. This chronic underfunding has brought us to a watershed moment, just as demand for our services is reaching unprecedented levels.

“The introduction of increased taxation on the sector via the ENICs without the funding support provided to NHS and local authority colleagues, will create unsustainable pressure on providers, particularly SMEs.  

“The future of social care is in the hands of this Government, and therefore we must continue to fight for the recognition and investment our sector deserves.”

ENDS

Notes to Editors:

The research by the House of Commons Library can be found here. Extra funding has been provided specifically for adult social care (or adult social care and children’s social care) since 2017/18. This funding has been additional to the general un-ringfenced revenue funding provided to local authorities, some of which is spent on social care.

Care England’s comments on the number of bed occupancy delays due to social care can be found here.

Previous Liberal Democrat research on social care costs for councils can be found here.

Reporting on social care costs as a proportion of council budgets and the effect on services can be found here.

Bed occupancy rates in England can be found here.

Research by the LGA can be found here.

Helen Morgan MP (Liberal Democrat Health and Social Care spokesperson) and Alison Bennett MP (Liberal Democrat Care and Carers spokesperson) will be available for interviews from 11.45am.