Financial Pressure on Councils Leading to Reduced Care Spending Survey Reveals
Local authorities across England have been forced to cut prevention spending by over 10% this year as adult social care costs spiral out of control, according to new research.
The latest findings from the Association of Directors of Adult Social Services (ADASS) reveal that councils overspent their adult social care budgets by a staggering £774 million in the previous financial year – marking the highest deficit in ten years.
The organisation’s Spring Survey, released this week, paints a stark picture of a system under unprecedented strain. Prevention spending has plummeted to £1.3 billion, its lowest level since 2021/22, as cash-strapped councils are forced to prioritise crisis interventions over early support services.
The survey findings highlight how mounting financial pressures are pushing local authorities into “crisis mode” operations. With escalating care costs and dwindling resources, councils are increasingly unable to invest in the preventative measures that could help residents maintain their independence longer.
Three-quarters of Adult Social Care Directors expressed serious doubts about their ability to meet statutory obligations for prevention and wellbeing services within their current budget constraints. This represents a significant challenge to the Government’s ambitious 10 Year Health Plan, which emphasises three key transitions: shifting from hospital to community care, moving from treatment to prevention, and embracing digital transformation.
The research underscores the difficult balancing act facing care leaders. As demand for intensive support services continues to rise, councils are finding themselves with little choice but to scale back early intervention programmes that could prevent more serious care needs from developing.
The survey also shines a light on the critical role of unpaid carers, who are increasingly stepping in to fill service gaps. These dedicated individuals – often family members and friends – are providing essential support that would otherwise fall to professional services.
However, the research warns that this reliance on unpaid carers comes at a significant cost, with many experiencing negative impacts on their own health and wellbeing. The survey emphasises the urgent need for enhanced local support systems to better assist these vital members of the care community.
Jess McGregor, ADASS President and Director of Adult Social Care in Camden, said: ‘We shouldn’t have to choose between helping people with complex needs now and preventing others from getting unwell – we need to support people at both ends of the social care spectrum.
‘But without more investment to keep people well and independent at home, we risk undermining the shift towards prevention and neighbourhood health that Wes Streeting, the NHS and this Government are rightly championing.’
Ms McGregor added: ‘It’s vital that adult social care leaders who are well versed in delivering support at the community level are meaningfully involved in decisions about where and how resources for neighbourhood health and care are spent. After all, acute hospitals are not best placed to deliver social care at the neighbourhood level – but councils are.’
Kathryn Marsden OBE (Formerly Kathryn Smith OBE), Chief Executive at the Social Care Institute for Excellence (SCIE), said: “The ADASS Spring Survey offers further evidence of a system under profound strain. When local authorities are forced to divert limited resources into crisis management, the opportunity to invest in preventative, early intervention is lost. This not only undermines outcomes for people who draw on care and support but also the Government’s own ambitions for both social care and the NHS.”
“A sustainable health and care system relies on a rebalanced model—one that moves resources into community settings to enable support to be delivered earlier, closer to home, and in ways that promote independence. The Government’s Ten-Year Plan rightly looks to address this—but largely overlooks the essential role of social care.
“Social care plays a vital role in facilitating safe hospital discharge, supporting individuals to maintain their wellbeing at home and enabling them to lead independent and fulfilling lives. Although the sector is in desperate need of reform to unlock its full potential, it has already done the work to identify what the problems are through reports such as this one. It has also been developing solutions that can be deployed now to improve the efficiency, integration and quality of care through projects like the ones funded by the Department of Health and Social Care’s SCIE-supported Accelerating Reform Fund.”
“It is now up to the Government, working in partnership with social care leaders, to ensure the preventative role of social care is not sidelined but prioritised in our health and care system reforms.”
Helen Walker, Chief Executive of Carers UK said: “This latest report reveals that most Directors of social services have seen an increase in unpaid carers’ approaching them for support this year due to burn-out and a lack of support from health services.”
“As services continue to be stripped back to the bare minimum for any but the most complex needs, it’s no wonder that unpaid family carers, on whom the system relies so heavily, are on the brink of collapse themselves. Many are providing more intense care themselves than ever.”
“This latest ADASS survey echoes our own research showing that an increasing number of people looking after disabled, older or ill relatives are experiencing poor mental health because of their roles. 65% said they feel overwhelmed because they have not had a break.”
“It is simply unacceptable that unpaid carers continue to bear the brunt of this crisis, finding themselves pushed to breaking point often to the detriment of their own health”
“This report sends a strong message to the Government that as part of the delivery of the 10-year NHS Plan, carers’ health and support needs must be firmly at its heart if it is to succeed. The move towards more community and home-based care is something that most carers are in favour of, but worry about having to provide more care, with a significant and growing minority already providing very significant levels and sometimes round-the-clock care, being even more concerned.”
