More than 80% of councils on course to overspend adult social care budgets: ADASS Autumn Survey

Four out of five councils (81%) are on course to overspend their adult social care budget in the current financial year, up from 72% in 2023/24, the Association of Directors of Adult Social Services (ADASS) has found.

According to its annual survey of English councils, adult social care financial pressures are “intensifying”, meaning that councils continue to face challenges in fully delivering on their legal obligations to people accessing care and support and their carers.

Further, the report warned that more councils are being required to make savings despite growing complexity of need and “escalating” costs – with 35% of councils being asked to make in-year savings, up from 19% in 2022.

The Association observed that in order to achieve the Government’s goal of shifting health and social care from "sickness to prevention," investment is needed to ease council pressures that currently limit spending to only those with the highest needs.

Directors of Adult Social Services rated ‘financial barriers’ and ‘competing service pressures’ such as delayed discharge as the “most significant” barriers to implementing the preventative activities that will help more people live healthier and more independently for longer.

ADASS described the Better Care Fund as “vital” for sustaining adult social care, and noted that aligning it with local finance cycles, and earlier framework publication could “enhance its effectiveness” from 2026.

The Better Care Fund programme supports local systems to deliver the integration of health and social care in a way that supports person-centred care, sustainability and better outcomes for people and carers.

Responding to the Autumn Survey, Cllr David Fothergill, Chairman of the Local Government Association’s Community Wellbeing Board, said: “Councils are facing severe funding and demand pressures, meaning finances are under strain like never before. While the additional £600 million is helpful, rising costs from National Living Wage and employer National Insurance increases are likely to absorb much of the grant. Many councils will have little left to address urgent care challenges, such as long assessment waits or delayed care packages.

“At its best, adult social care supports adults of all ages to live the life they want to lead. But as this vital report highlights, a range of serious concerns that councils have been raising for years remain and a vast majority of councils are now struggling to balance the books. Immediate investment is needed in order to address unmet and under-met need and ensure timely access to social care for all who need it.”

Lottie Winson