Social care is on the brink – government intervention is crucial to stop vulnerable people suffering

23 March 2025, 10:23 | Updated: 23 March 2025, 10:25

By David Glover

As one of the largest home care providers in the UK, Caremark is acutely aware of the challenges facing the social care sector.

With over 6,000 care staff and 136 franchisees to look after, we are already feeling the impact of the recent Autumn Statement – which is significant.

But I’m more worried about the repercussions of the Chancellor’s Spring Statement,  which will be read out in the House of Commons on March 26th.

I am concerned. I'm concerned for the industry as a whole, not just for Caremark.

I do have sleepless nights about it. Ultimately, the person that's going to suffer is the end user.

The anticipated 7.8% increase in operating costs poses a serious threat to the sustainability of care services.

Local authorities, which fund 70% of Caremark's services, are under immense financial pressure.

An alarming 81% of local authorities are looking to cut their social care budgets, despite the pressing need to increase them.

This financial strain makes it impossible for Caremark to pass on costs to individual customers, leading to a precarious situation where operating costs outpace funding.

The Home Care Association has set the minimum price for sustainable care at £32.14 per hour, yet local authorities are paying less than £20 per hour.

This discrepancy raises serious concerns about the quality of care being provided and the financial viability of care businesses.

The sector has been underfunded for decades, and the current financial pressures could be the final nail in the coffin for many care providers.

Recent surveys indicate that 62% of businesses may either go under or be forced to lay off staff.

This potential collapse would have devastating effects on vulnerable individuals who rely on high-quality care.

To mitigate this crisis, there is a pressing need for government intervention.

I just wish that the Chancellor would grasp this nettle, deal with it, and be proactive, rather than sitting back and saying “Well, we're applying it to everybody across the board,” without realising the effect it will have.

If there's one thing I'd ask Rachel Reeves, is to allow social care to be exempt from those national insurance increases that are going to have such a detrimental impact on the business sector.

Unfortunately, recent attempts to secure this exemption have been unsuccessful, leaving the sector in a precarious position.

In conclusion, while Caremark remains optimistic about its future, the broader social care sector faces an existential threat.

Without immediate action, the quality of care will decline, and vulnerable people will suffer.

It is imperative that policymakers recognise the gravity of the situation and take decisive steps to support this essential industry.

David Glover is the Joint CEO of Caremark, as well as a solicitor and leading UK franchising specialist.

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