Independent Care Group Calls on Chancellor to Deliver Immediate Social Care Action in Budget
Independent Care Group Calls on Chancellor to Deliver Immediate Social Care Action in Budget
The Independent Care Group (ICG) is today urging Chancellor John Healey to make social care a priority in the forthcoming Budget, warning that communities cannot afford to wait until the next Parliament for meaningful reform.
In an open letter to the Chancellor, ICG Honorary President Mike Padgham welcomed the Government’s ambition to reform social care through the proposed National Care Service, but stressed that providers, people needing care, and their families require support now.
“After almost four decades working in social care, I am encouraged to hear the Prime Minister acknowledge the need for fundamental reform,” said Mr Padgham. “However, those who need care today cannot be asked to wait several more years for change. The challenges facing social care are immediate, and the solutions must begin now.”
The Independent Care Group is calling for greater investment in social care and community-based services to help reduce pressure on the NHS, particularly by supporting people to leave hospital safely and quickly when they no longer require acute treatment.
“The NHS cannot be fixed without fixing social care,” Mr Padgham said. “Investment in community care helps prevent hospital admissions, supports timely discharge, improves people’s quality of life, and delivers better value for taxpayers.”
The ICG believes local authorities should be given adequate funding to commission care at sustainable rates, while providers must be supported to recruit and retain staff, expand services, and work more effectively alongside NHS partners.
The organisation is also calling on the Treasury to address the long-standing issue of irrecoverable VAT within the social care sector. While qualifying care services are VAT exempt, providers are generally unable to reclaim VAT paid on the goods and services needed to deliver care, creating significant additional costs for many operators, particularly smaller family-run providers.
“Care providers are essential community services,” added Mr Padgham. “The Government has recognised the importance of supporting other sectors facing financial pressures. Social care deserves that same recognition.”
The Independent Care Group says a targeted VAT relief or recovery mechanism would help providers invest more money directly into care, staffing, facilities, and service quality.
Mr Padgham concluded: “For decades, social care has been subject to reviews, promises, and delayed decisions. This Budget presents an opportunity to demonstrate that things will be different. By investing in social care now, the Government can improve lives, ease pressure on hospitals, support economic growth, and deliver lasting benefits across public services.
“We urge the Chancellor to turn ambition into action. Support providers now. Invest in community care now. Begin the reforms now. Social care can no longer be an afterthought.”
