Social Care Sector Faces Financial Crisis Due to Tax and Wage Hikes

Think tank warns £2.8bn cost increases could lead to widespread provider closures, disrupting care for vulnerable individuals.

The Nuffield Trust estimates a £2.8 billion financial burden on England's adult social care providers in 2024 due to national insurance and wage increases.
A 1.2 percentage point rise in employer national insurance contributions and a reduced earnings threshold will cost the sector an additional £940 million annually.
The national living wage increase to £12.21 per hour is expected to add £1.85 billion to the sector’s wage bill next year.
Experts warn many care providers may go out of business or raise fees, leaving council-funded individuals at risk of losing access to care services.
The government has allocated £600 million for social care in the latest budget, but analysts argue this falls significantly short of the funding required to stabilize the sector.