Fears for social care system ‘on the precipice’
Rising costs have left adult social care "on the precipice", independent providers have warned.
More than two in five (42%) care providers have had to close part of their organisation or hand back contracts to authorities due to financial pressures, Care England's annual report found.
The largest representative body for independent providers in England says 82% are either in deficit or saw a decrease in their surplus last year – with staff pay cited as the most significant cost pressure.
Utility costs were also seen as a significant cost pressure for 60% of providers with bills soaring by as much as 500% for some, its report said.
The report, compiled with learning disabilities care provider Hft, is based on a survey of 192 organisations. – 67% caring for adults with learning disabilities and 28% looking after older people.
The report said: "The adult social care sector is on the precipice, with 82% of providers either in deficit or experienced a decrease in their surplus.
The report said that high staff turnover and vacancy rates are impacting people who need care, with 18% of providers stating that they had to close services due to staff shortages, 58% turning down admissions due to shortages and 69% increasing the use of agency staff.
They want the Government develops a pay framework to establish a minimum care wage, above the level of the National Living Wage and tied to NHS pay scales.
Care England described Wednesday’s Budget as a “missed opportunity” to move towards a sustainable funding settlement for the sector.