Last Updated on November 27, 2025

The adult social care sector has issued its response to yesterday's Autumn Budget – the main applicable measures include:

• The National Living Wage (NLW) for over 21-year-olds will rise by 4.1% in April 2026, from £12.21 to £12.71 per hour (last year was 6.7%).
• The NLW rate for 18 to 20-year-olds will rise by 8.5%, from £10 to £10.85 per hour.
• The employers' National Insurance contributions secondary threshold is being held at £5,000 until 2031.

Commenting on the measures impacting the sector, Professor Vic Rayner OBE, Chief Executive at the National Care Forum (NCF), said, '[The] Chancellor’s second Budget seems to overlook the financial support desperately needed by care and support providers. Social care is a public service and much of it is commissioned by the state, yet unlike last year, where the Chancellor announced dedicated funding to be made available in the Local Government Finance Settlement to cover both wage and structural changes for adult social care, this year she was silent.

'We know that social care needs to change – so how does this budget move forward social care? Getting apprenticeships right for social care would be a significant step change to bridge the gap in UK national workforce. The devil is in the detail, but an initiative that created free training for social care apprentices for SMEs would support a core part of the sector under pressure and strengthen local delivery. However, there was no explicit reference to the vital need for a social care workforce strategy. This is particularly important as the Home Office’s plans to introduce more stringent settlement conditions for migrant care workers already in the UK is likely to drive many away at a time when recruitment of domestic workers continues to fall.

'This [B]udget has strengthened the national agenda to grow health tech, whilst ignoring the reality that millions of people receive social care behind closed doors, in their own homes – where flexible responsive data driven technological solutions can augment and support the care that people need. Upgrading the focus on innovation and technology in social care is not a "nice to have", it is an essential plank in addressing the changing needs and demography that must drive forward change.

'It appears that the Government continues to step back from the difficult decisions about social care – leaving Baroness Casey to speak truth to power. However, if the truth is that the cupboard is bare – then a budget which neither recognises the contribution or the real cost of adult social care will feel like a missed opportunity – one that we will all be paying for long into the future.'

The three Co-chairs of the Care and Support Alliance: Caroline Abrahams CBE, Charity Director at Age UK; Jackie O’Sullivan, Executive Director of Strategy and Influence at Mencap; and Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, said, '[The] Budget announcement does nothing to address the escalating crisis in social care. Adult social care budgets in England are already heading for a £623m overspend this year, driven by rising demand from people with increasingly complex needs – and demographic modelling shows this pressure will only increase as more of us live longer with multiple long-term conditions.

'Behind these figures lies a staggering level of unmet need. Disabled people, older people and unpaid carers are being left without the basic support required to live safely and with dignity. Families are being pushed to breaking point, and local authorities cannot continue stretching budgets that no longer meet even their legal duties. We strongly support the work of the Casey Commission, which will play a vital role in setting out long-term solutions – but action on social care cannot wait until 2028. People need help now. The Government must commit to urgent investment or the crisis will deepen further and the human cost will continue to grow.'

Ewan King, Chair of the Care Provider Alliance, said, 'Whilst we welcome some of the measures in the Budget for the NHS and neighbourhood health, we are disappointed that there was no additional funding in the budget for social care. Social care acts as the glue which binds many people together and supports them to live a good life, and this budget is a missed opportunity to invest in good social care which so many depend on.'

Sally Gainsbury, Senior Policy Analyst at the Nuffield Trust, said, '[The] Budget has boosted the National Living Wage – which will come as welcome news to the many social care workers on low wages – but there’s no new money to help the care sector with the impact. With almost a quarter of the 1.5 million strong care workforce paid within 10p of the Living Wage in 2024, even small increases can have a big impact on the cost of delivering care. We estimate that this increase could cost the sector around £1.2bn. It is difficult to see how current levels of investment will stretch to deliver even the planned social care workforce reforms, let alone leave enough for wider changes to England's broken care system.

'Social care is still in dire straits and the impact of last year’s Budget measures, including employers' National Insurance rises, are beginning to bite. Ultimately, people who need care and support will feel the effects as cost pressures continue to increase.'

Professor Martin Green OBE, Chief Executive at Care England, said, '[The] Budget leaves social care facing significant headwinds. Extending the freeze on Income Tax and National Insurance thresholds for three more years means care workers will keep less of any future pay rise. It reduces the real value of the Fair Pay Agreement [FPA] before negotiations have even begun. If the Government wants the FPA to succeed, it must ensure the funding reflects the realities created by its own tax decisions.

'We welcome the Chancellor’s commitment to consult on support or deferral of the new Council Tax measures, but care homes must be explicitly included in that process. Providers are already absorbing rising wages, higher operational costs and increasing complexity of care, all at a time when councils are in severe financial difficulty. Added taxation risks destabilising services that are already stretched to breaking point.

'There are, however, important positives. The decision to fully fund apprenticeships for SMEs has real potential to bring more young people into the care workforce, and removing the two-child limit will offer meaningful support to many low-paid families working in social care. These are steps in the right direction.

'But the wider message remains clear. If the Government is serious about growth, it must recognise that social care is fundamental to the economy. The NHS cannot deliver its [10 Year Health Plan] without a stable and well-funded social care system alongside it. The Government’s own analysis shows that investment in adult social care strengthens local economies, boosts employment and increases productivity. Social care is not peripheral; it is central to achieving the country's ambitions.

'The task ahead for Casey and the Fair Pay Agreement negotiations has now become even more challenging. Without timely and adequate investment, the ambitions of the FPA risk being undermined before they start, not through lack of vision, but as a direct consequence of decisions made in this Budget.'

Karolina Gerlich, Chief Executive Officer at The Care Workers’ Charity, said, '[The] Budget was a missed opportunity. While the Chancellor spoke of fairness, care workers – who provide essential, skilled work every single day – were once again left without the investment they urgently need. Adult social care is the backbone of our society, yet the workforce continues to shoulder rising pressures with little recognition or reward. Care workers need real investment today: [F]air pay, safe staffing levels and long-term stability. Without them, our entire care system is at risk.'

Tim Coolican, Partner and Head of Health and Social Care at Anthony Collins, said, 'Social care providers will be disappointed that additional funding hasn’t been made available for them now to support service provision and to offset higher employment costs. However, they will welcome the update (from the Chancellor) on the funding model to replace NHS England. Whilst joined-up, devolved commissioning authorities have long been a goal, in reality the current mix of [integrated care boards (ICBs)] ICBs and integrated care systems have been neither effective nor efficient.

'This announcement about plans to establish Neighbourhood Health Centres should facilitate easier access to key services. This investment in proper, community-based infrastructure reflects what social care providers have always known – improving access to services and investing in preventative measures will not only improve public health but reduce pressure on the NHS. We look forward to hearing the detail on how these services will be tailored to meet the needs of their local population.'

Rachael Dodgson, Chief Executive at Dimensions, said, '[The] Budget says nothing about adult social care. The [G]overnment has effectively abdicated its responsibility for reforming adult social care in this parliament. Instead, the [G]overnment is waiting for the Casey Commission to release its findings, with the final report not due until 2028.

'Yet adults with learning disabilities and autistic people who draw on support cannot wait that long. Neither can the 1.5 million people working in social care. The [G]overnment’s September announcement of £500m for the Fair Pay Agreement for social care – which like the Casey Commission, won’t be implemented before 2028 – is nowhere near enough.

'This Budget both could and should have ring-fenced money to invest in the social care workforce in advance of the first Fair Pay Agreement for social care in 2028. We need faster action and appropriate funding – and recognition for the social care workforce to support recruitment, retention and consistent, high-quality support for those who rely on it. The time to act is now.'

Cllr Kevin Bentley, Senior Vice Chairman of the Local Government Association (LGA), said, 'Scrutiny of [the] Budget will focus on decisions around national taxation. However, while people rightly care about tax levels and the cost of living, they also care deeply about the local services they rely on every day.

'Councils work tirelessly to deliver on the ambitions of residents and are key to solving many of the challenges the Government is looking to address. However, local government finances remain under severe pressure with councils facing huge cost pressures in areas including adult social care, temporary accommodation, SEND and home to school transport.

'The Government has acted on LGA calls to provide greater financial certainty and a simpler funding system, which are hugely important for councils. While funding levels have increased in recent years, councils will be rightly anxious that [the] Budget does not provide the increase in funding they desperately need to ensure their financial sustainability, protect services, support local communities and address national priorities.'

Paul Teverson, Chair of the Retirement Housing Group (RHG), said, 'We recognise the fiscal challenges the country faces but this Budget does little to help older people, particularly those who want to downsize into homes better suited to their needs. Not reducing or reforming stamp duty blocks those in later life from moving and limits the release of family homes for younger people. The RHG has called for downsizing to be supported as it would free up housing, reduce NHS demand, deliver health and social care savings and increase independence in later life. It would also add billions of pounds to the economy through the development of more specialist housing for older people.

'We repeat our call for the [G]overnment to act on the clear recommendations made by the Older People’s Housing Taskforce. It set out a roadmap for expanding retirement housing and improving affordability and consumer understanding and awareness. The continued delay in publishing the long-promised Housing Strategy also leaves retirement housing operators without the certainty they need to invest.'

Jonathan Byrd, Managing Director at Good Care Group, said, 'The Budget’s emphasis on workforce stability is essential for the future of social care. High quality live-in care is built on the skills, compassion and continuity that only experienced, well-supported carers can provide. Any measures that strengthen the profession, improve retention and recognise the value of care work are steps in the right direction. A stable, motivated workforce ultimately benefits the families who rely on us and reduces pressure on the wider public health and local-authority-delivered care system.

'At the same time, our clients are typically financially independent and choosing to invest in staying safely and comfortably in their own homes as they age. Predictability in pension and tax policy allows families to plan with confidence and make responsible long-term decisions about care. The changes to policy around salary sacrifice and pensions are concerning as all of us need to prepare for the time when we cannot work, and the reality is that many of us will need care, so financial freedom of choice in later life is decided by the decisions we take now about saving for our future.'

To read the full Budget 2025 document in print, web and HTML accessible versions, visit GOV.UK.

In other news, Government has announced plans for a new legal migration model which will introduce major changes to the current system.