CHD Living Urges Government to Act Now as April Cost Increases Push Social Care to Breaking Point

Family owned and operated care provider, CHD Living, is calling on the Government to immediately address the funding crisis in adult social care, warning that inaction will force providers into closure and leave the UK’s most vulnerable without essential care. With Local Authority (LA) rates failing to keep pace with rising costs, the sector is now in financial freefall.

From April 2025, Government-mandated cost increases – including the National Minimum Wage and National Insurance hikes – will impose an unprecedented financial strain on care providers. Yet, Local Authorities and Integrated Care Boards (ICBs) continue to offer below-cost fees, leaving providers with no ability to adjust rates to reflect their escalating expenses. The result? Care homes shutting their doors, staff leaving in droves, and thousands of people left without the care they need.

A Crisis That Can No Longer Be Ignored

The financial burden facing care providers is now unsustainable, and without Government action, social care will collapse.

• Local Authority rates are not increasing in line with real costs, meaning providers are expected to operate at a loss.
• Employer National Insurance contributions are rising from 13.8% to 15%, with an additional financial hit from the reduced per-employee NI threshold.
• National Living and Minimum Wage increases will add millions in costs across the sector, while Local Authorities refuse to match these increases.
• Staffing shortages are already at crisis levels, and without the ability to offer competitive wages, providers will struggle to retain their workforce.

“This is not just a financial issue – this is about people’s lives,” said Shaleeza Hasham, Commercial Director at CHD Living. “Care homes are being pushed into impossible positions, expected to absorb rising costs while funding from Local Authorities remains woefully inadequate. If this continues, the result will be catastrophic – homes will close, hospital discharge backlogs will spiral out of control, and vulnerable people will be left without the care they so desperately need.”

We need urgent intervention. We need Local Authority rates that reflect the real cost of care. And we need the Government to recognise that without social care, the entire healthcare system is at risk.”

Government Must Act Before It’s Too Late

CHD Living is calling on the Government to:

• Urgently review Local Authority funding to ensure fees reflect the true cost of providing care.
• Provide immediate financial relief to offset the National Insurance and wage increases coming in April.
• Deliver a long-term funding plan that ends the cycle of underfunding and ensures sustainable, high-quality care for those who need it.

Failure to act will destabilise the entire healthcare system, forcing vulnerable individuals into hospitals, exacerbating NHS capacity issues, and driving skilled care professionals out of the sector.

“This crisis has been looming for years, and now we are at a tipping point,” Shaleeza added. “We cannot continue to prop up an underfunded system while costs keep rising. The time for debate is over – we need action, and we need it now.”