Social care ‘endangered’ by ‘catastrophic’ national insurance increases, warns ADASS President

The Government’s Budget decision to increase employer National Insurance Contributions (NICs) will have “catastrophic consequences for millions of people drawing on care and support” will warn Melanie Williams, President of the Association of Directors of Adult Social Services (ADASS).

Opening the National Children and Adult Services Conference in Liverpool on Wednesday 27th November, Ms Williams will say the decision will place adult social care under “even greater financial pressure, which will be insurmountable for some care providers, who people rely on for everyday basic needs like washing and dressing.”

It’s likely some Councils will have to consider further rationing care and support, focusing on those people with the greatest needs. People waiting for care are likely to face further delays, risking their health deteriorating further and those paying for their own care may be forced to cut back on support due to increasing costs, making their lives more difficult. Some care providers say they will stop providing care in certain areas or stop operating completely because it’s no longer cost effective, reducing care available for people.

Adding her voice to growing calls for an exemption for social care providers to the NICs increase, Mel Williams will argue that despite £600mn additional funding being announced in the Budget for adult social care, this won’t cover the significantly higher operating costs that care providers will now face as a result of increases in both NICs and the National Living Wage which in turn will impact on the fees councils pay to care providers, which ADASS can today reveal could cost up to £1.8bn.

While councils’ direct employees and the NHS will be exempt from the increases, social care providers including voluntary, community, faith and social enterprises which provide the vast majority of care they commission, will not. These costs will be passed on to councils which will force them to continue to overspend on adult social care budgets. Even before the budget, 81% of councils overspent on adult social care by half a billion pounds last year – and this is now set to increase.

ADASS is calling on the Government to counter the impact of the NI employer increases on the social care sector. Options being discussed within the sector include delaying the implementation of the increases, lowering the rates, exempting providers or paying councils compensation.

Mel Williams will say: “We cannot vision for a tomorrow when the cost of today has become so insurmountable. The budget had catastrophic impacts on the cost of Adult Social Care. Not just for Local Government, but also for out important partners who support people in their neighbourhoods and in our voluntary and community sector.”

ADASS members have been reporting concerns with the NICs increase, namely that the social care providers they work with are worried and it is impacting costs and contract negotiations already. ADASS staff have been sharing the views of its members and concerns with Government.

The Minister for Care, Stephen Kinnock will have the chance to reassure the sector when he addresses the conference on Thursday 28th November.

Ms Williams will also discuss her shared goal with Andy Smith, President of the Association of Directors of Children’s Services (ADCS), to improve support for young people drawing on social care as they become young adults. She will acknowledge that ‘at times, it can be tough navigating the system we have and particularly how challenging it seems to be to enable steps from one stage to another.’ Further details are contained in a new report on this issue, to be launched at the conference.

Other speakers at the conference include Sir Martyn Oliver, HM Chief Inspector of Ofsted who will make a keynote speech on Thursday and Sally Warren, Head of Strategy for the NHS 10-year plan will address the conference on Friday. Those with lived experience of social care will be leading a series of ‘big chats’ to ensure co-production of care and support is at the heart of reform. The conference will address the challenges and move towards the solutions to improve the support for, and outcomes of, all children and their families, and adults accessing social care.

ENDS
Notes to editors

1. For media queries and interview requests please contact vicky.smith@adass.org.uk
Tickets for NCASC are free to media and there are still spaces available. Please see booking links below.

2. For Melanie’s full speech please click here, or contact the press office. This will be delivered during the opening plenary of conference at 10am on Wednesday 27^th November.  

3. ADASS has worked out the impact on councils as £1.8bn by combining the £1.2bn in inflationary pressures made up of increases in the National Living Wage of 6.73% and CPI of 2.5%, plus £0.6bn for the impact of increases in social care providers employer National Insurance contributions on the cost of provider fees paid by councils.

4. ADASS Autumn Survey is online here: ADASS Autumn Survey 2024 – ADASS

NCASC
This event is jointly organised by ADASS with the Local Government Association (LGA) and The Association of Directors of Children’s Services (ADCS). Full details available at: www.ncasc.info