We invite you to experience first hand the challenges faced by thousands of care and support providers. Join us at Parliment Square Gardens in London on February 25, 2025, for the Providers Unite Picnic. This is a critical opportunity to discuss with us how the Treasury plans to ensure appropriate funding for these vital public services.
Social Care in Numbers:
- 1.6 million people are employed in social care.
- 1.2 million people are supported by us through Local Authority funding.
- For every £1 spent, the social care sector generates £2.36 in economic benefit.
We are an essential public service for this country. It’s time the government recognised that.
Urgent Concerns Over Funding Shortfall
Providers Unite are deeply concerned about the impact of recent changes announced in the Autumn 2024 Budget by Chancellor Rachel Reeves, particularly:
- The increase in employers’ National Insurance contributions.
- The rise in the National Living Wage from April 2025.
While we strongly support fair wages for our workforce, these additional costs brought in with just six months’ notice—are entirely unfunded, adding an estimated £2.8bn per year to our sector’s costs. Yet, the Government has committed only £880m in additional funding.
A Sector at Breaking Point
National Minimum Wage has increased by 37.04% between April 2021 (£8.91) and April 2025 (£12.21), yet funding has not kept pace, placing care providers on an unstable footing and pushing many towards the brink of bancruptcy.
Currently there is sectorwide funding gap of £8.4bn.1 meaning providers are already struggling to sustain essential services. Research by the independent think tank the Nuffield Trust, published in November 2024, calculated the overall financial impact of the additional costs of the 25/25 Budget on independent care and support providers as £2.8 billion.2 Cumulatively this cost of investment from April 2025 is more than £10bn.
Why over 20,0003 Community Care and Support Services are uniquely Vulnerable:
- 70% to more than 80% of our costs go towards employing people, meaning wage increases have a disproportionate financial impact.
- Our workforce is largely part-time and low-paid, leading to higher National Insurance costs with sudden wage increases.
The Consequences if Funding Does Not Improve:
- Care and Support Providers will be forced out of business, leaving Local Authorities and the NHS to take on additional responsibility, despite already being under huge pressure.
- Increased safeguarding risks and difficulty meeting demand, further straining families and local economies.
- Reduced investment in high-quality support, limiting independence, choice, and control for those who rely on care.
Government Must Act Now
Social care is a statutory service under the Care Act 2014, commissioned and funded by councils. However, council fee rates have failed to match rising costs for years. Without urgent intervention, many providers will be forced to close, leaving the most vulnerable without the support they need.
Join with us on February 25th to for the funding we need. The future of social care depends on it.
Confirm your attendance by 17th Feb 5pm using the Linkedin Event Facebook event – tell us in the comments if you are bringing more than one person.
