Will social care receive the investment it needs?
The Association of Directors of Adult Social Services (ADASS) has recently published a survey[1] in which it was found that councils are now £715 million over budget due to the rising cost of social care. The survey reveals that 77% of directors noted a significant increase in young people with mental health needs, and 86% reported an increase in people with mental health needs overall.
Three quarters of directors[2] reported that members of the public who were previously covered by NHS Continuing Healthcare (CHC) are now having to resort to their local council as they are no longer eligible for CHC[3]. Continuing Healthcare is for those with long-term complex health needs who qualify for free health and social care, which is funded solely from the NHS.
ADASS has stated that a lack of investment in CHC from integrated care boards (ICBs) has contributed to the risk of overspending by councils to some extent. In a speech at a Nuffield Trust Summit, head of the Casey Commission, Baroness Casey, stated that it is ‘astonishing some ICBs are paying private sector companies to find ways to cut what they pay out from their Continuing Health Care budgets’[4].
The survey also found two thirds of respondents (66%) reported they had seen local providers close, cease trading or hand back contracts in the previous six months, impacting 3,964 people[5]. This is partly attributed to a lack of investment by ICBs, as well as the growing demand for social care by young people.
Dr Jane Townson OBE, CEO of the Homecare Association has attributed the current challenges in social care to ‘growing complexity, unfunded employment costs, and the NHS transferring responsibility for people with complex health needs without transferring the money‘[6].
ADASS has stressed a clear need for reform to support adult social care[7]. The recommendations include that the government should work with the NHS and adult social care partners to ensure the current framework for CHC is based on legal entitlement and assessed need rather than financial pressure[8]. In order to manage the increase of young people requiring social care, ADASS has recommended that those in the 14-25 age group are identified and supported at an early stage to help progress into adulthood[9].
In response to the ADASS survey, the Social Care Institute for Excellence interim chief executive Gerard Crofton-Martin stated, ‘As demand continues to grow and needs become more complex, it is vital that reform is grounded in what matters most to people’[10].
NHS England is currently proposing a Targeted CHC Financial Work & Deep Dives Programme, which aims to audit and manage the finances for All Age Continuing Care. The Homecare Association has previously written to NHS England concerning this programme, requesting that NHS England ‘pause and engage with the sector before this programme proceeds: to establish first whether current rates are enough to fund safe, legal care, and to review the use of contingent-fee arrangements in NHS-funded care’[11]. In line with ADASS, the Homecare Association has also stressed that the need for CHC is based on ‘a person’s needs and legal entitlement, and not the state of an ICB’s finances’[12].
As mentioned in a previous article, the health and social care sector is currently undergoing reform, with changes to be implemented following the release of part one of the Casey Commission in late 2026.
[1] https://www.adass.org.uk/wp-content/uploads/2026/07/ADASS-Spring-Survey-2026-Final-1-1.pdf Page 3.
[2] https://www.adass.org.uk/adass-spring-survey-rising-adult-social-care-needs-leave-councils-715-million-over-budget/
[3] https://www.homecareassociation.org.uk/resource/homecare-association-responds-to-adass-spring-survey-2026-and-cqc-local-authority-assessment-findings.html
[4] https://caseycommission.co.uk/wp-content/uploads/2026/03/Baroness-Caseys-speech-to-the-Nuffield-Trust-Summit-%E2%80%93-5-March-2026-.pdf
[5] https://www.adass.org.uk/wp-content/uploads/2026/07/ADASS-Spring-Survey-2026-Final-1-1.pdf Page 4.
[6] https://www.homecareassociation.org.uk/resource/homecare-association-responds-to-adass-spring-survey-2026-and-cqc-local-authority-assessment-findings.html
[7] https://www.adass.org.uk/wp-content/uploads/2026/07/ADASS-Spring-Survey-2026-Final-1-1.pdf Page 49.
[8] https://www.adass.org.uk/wp-content/uploads/2026/07/ADASS-Spring-Survey-2026-Final-1-1.pdf Page 49
[9] https://www.adass.org.uk/wp-content/uploads/2026/07/ADASS-Spring-Survey-2026-Final-1-1.pdf Page 49
[10] https://www.scie.org.uk/news/detail/scie-responds-to-adass-spring-survey/
[11] https://www.homecareassociation.org.uk/resource/homecare-association-responds-to-adass-spring-survey-2026-and-cqc-local-authority-assessment-findings.html
[12] https://www.homecareassociation.org.uk/resource/homecare-association-responds-to-adass-spring-survey-2026-and-cqc-local-authority-assessment-findings.html
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