Local Authorities Falling Short on Fair Social Care Funding
The Care Act 2014 places a clear statutory duty on local authorities (LAs) to provide appropriate care for those who need it and to pay care providers a fair and sustainable rate. The Act explicitly states that LAs must not take actions that could threaten the long-term sustainability of the social care market, such as setting fees below viable levels.
Despite this, many LAs across the UK are failing to uphold their responsibilities. Fee uplifts often fall short of covering rising inflationary costs, including energy, food, supplies, and staffing. As a result, providers—especially those heavily dependent on local authority funding—are facing compressed margins and increased financial pressure, jeopardizing the quality and availability of essential care services.
Ensuring fair funding is critical to maintaining a sustainable, high-quality social care market, supporting both providers and the vulnerable populations they serve. Without timely action from LAs, there is a growing risk of reduced service provision and market instability.
Connell Consulting provided an analysis on negotiating fee uplifts to cover increasing costs of elderly care. Analysis published, June 2023 here…