Social care is on the brink of collapse and cannot wait until 2028 for Government intervention to fix the crisis, according to the latest Sector Pulse Check Report by learning disability charity Hft and Care England.
The annual report again shows that social care is still facing workforce shortages and funding instability that, without immediate intervention, will have devastating consequences for those who rely on care daily.
While Hft and Care England welcomed the announcement of a new adult social care commission headed by Baroness Louise Casey earlier this month, they are asking the government to commit to a credible, multi-year funding settlement for adult social care in the 2025 Spending Review.
This will financially support providers who have suffered years of underfunding and ensure that future funding accounts for wage increases, inflation, and National Insurance contributions.
They do not believe that the new commission needs to spend months examining the issues. Instead, it should work directly with the sector and use data such as the robust, multi-year Sector Pulse Check, Dilnot Commission findings, and recommendations from the Darzi report to quickly identify and focus on the actions to be taken.
The two charities also want a fully funded plan to support the workforce and bring care workers’ pay and conditions in line with their NHS counterparts.
The report is based on responses from more than 200 small, medium and large adult social care providers – collectively responsible for supporting over 128,000 people – and gives an overview of the current state of the social care sector and presents the case for urgent change.
It found that 90% of providers cited rising workforce costs as one of their top three cost pressures, with 95% reporting that increases in the National Living Wage are their deepest concern. This is due to the shortfalls in fee increases from local authorities to cover these costs—reported by 85% of providers—leaving them to absorb the gap.
Domestic recruitment continues to be a struggle for providers, with 85% reporting that pay rates are the biggest barrier to recruitment. International recruitment was the most frequently reported method for filling vacancies, with 40% employing this strategy. Unfortunately, changes to the UK’s immigration rules have severed this lifeline, as providers reported a significant drop in international applications.
Due to the increasing financial pressures, three in ten providers have been forced to close parts of their organisations or hand back contracts to local authorities. In addition, one-third are considering leaving the market altogether, leaving an estimated 275,000 people without the care they rightly expect and are legally entitled to.
Steve Veevers, chief executive of Hft, says: “This year’s Sector Pulse Check is the next critical step for outlining clear, actionable solutions. It provides a detailed, up-to-date picture of the sector’s pressures and highlights urgent priorities such as workforce shortages, funding instability, and improved support for care workers.
“While the announced reforms show promise in improving coordination between health and social care, immediate action is crucial to stabilise the sector and ease the growing strain on care providers and the NHS.
“We urge the government to consult with Hft and other providers who have done the research and are ready to collaborate on practical, immediate measures. The Sector Pulse Check provides the roadmap—now we need action to ensure the care sector’s future through decisive steps, not deferred promises.”
The charities are calling on the Government to fund the increase in Employer National Insurance contributions or exempt care providers entirely and remove the ban on dependents for international social care staff.
They also want it to enforce fee uplift announcements from the start of each new financial year and mandatory payment timelines for local authority and Integrated Care Board payments, with penalties for delays.
Professor Martin Green OBE, chief executive of Care England, added: “Providers face impossible choices: absorbing unsustainable costs, changing their care models, cutting back on services, or shutting their doors entirely. This isn’t just a warning, it’s a crisis unfolding in real time. Years of unrelenting financial strain and a workforce stretched to breaking point have left social care hanging by a thread. Without immediate intervention, the consequences will be devastating for those who rely on care every single day.
“Carers deserve a workforce strategy that serves as a testament to their unwavering dedication – a blueprint for meaningful change that ensures they’re properly paid, given real opportunities for development, and recognised for their vital contribution to society. This requires not just funding but a cross-party commitment to implement transformative, long-term solutions for the sector.
“The Government talks of delivering ‘an NHS fit for the future,’ but let’s be clear: you cannot fix the NHS without fixing social care. We are ready to work alongside Baroness Casey and the Government to turn this commission into a catalyst for genuine change. But let’s be clear: the status quo is no longer an option. Every delay, every failure to act, pushes more care providers out of the sector and leaves more people without the support they need.”
