Financial and workforce pressures are forcing adult social care providers to turn down new admissions and close services, according to research.

The 2023 Sector Pulse Check report, commissioned by learning disability charity Hft and Care England, finds that government grants are not reaching the people who need them most.

The report, based on a large-scale survey of adult social care providers, reveals that despite a £7.5bn funding boost in the 2022 Autumn Statement, there has been little progress in the key challenges facing the sector.
 
Energy cost increases of up to 350% and unfunded rises in the National Living Wage left 40% of adult social care providers in deficit in 2023. More than 84% of care providers said that recent government funding initiatives such as the Market Sustainability and Improvement Fund and International Recruitment Fund made no difference to the financial sustainability of their organisation over the past year.
 
The survey found reduced capacity among providers as:

• 43% closed services or handed back contracts
• 18% offered care to fewer people
• 39% considered exiting the market altogether
• 44% had to turn down admissions due to a lack of staff

Hft and Care England are calling on the government to implement immediate measures to support the care sector, including improving commissioning practice, revising VAT arrangements and removing barriers to ethical international recruitment.

Professor Martin Green, chief executive of Care England, said the sector was on “red alert” despite the government’s “narrative of ‘record investment’ into the sector.”
 
“It’s clear that the way our system is funded needs a rethink,” he said. “For years, adult social care providers have absorbed increased costs and inflationary pressures without corresponding funding. When money is made available it simply isn’t cutting through. Recent changes to immigration rules and an insufficient Local Government Finance Settlement this year further suggest a Government that is heading in the wrong direction.”

Steve Veevers, chief executive of Hft, said the upcoming general election provided the new government with “a perfect opportunity to address what is a key challenge for today’s society but one which nobody seems to be taking seriously enough.”

“Our report provides several realistic, practical and impactful suggestions – including reforming VAT, revisiting the new visa laws for international workers and establishment of national commissioning standards – which we shouldn’t delay in implementing if we want to see real change from the next government,” he said.
 
“Our long-term vision remains one of a sustainable sector that is financially viable and an attractive destination for staff. While this may seem a distant reality, there are a range of policies at the Government’s disposal that would help turn the tide and put us on the path towards a sustainable future. As we count down to a general election, the Government must now make good on their promise to fix our sector. The recommendations outlined in this report represent pragmatic first steps and I urge the Government to lose no time in implementing them.”

A Department of Health and Social Care spokesperson said: “To address the issues facing the care sector, we’re investing up to £8.1 billion to put the adult social care system on a stronger footing, enabling local authorities to buy more care packages, help people leave hospital on time, and reduce waiting times.

“We have made significant progress in delivering the People at the Heart of Care plan, our ambitious 10-year vision which will transform care in England.

“Last week, we also announced a major boost to the care workforce through the creation of a new accredited qualification meaning for the first time, there will be a national care career structure, giving the profession the recognition it deserves.”