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Budget: what does this mean for the health and social care sector?

The general consensus across the health and social care sector is one of yet another missed opportunity to bring social care to the front and centre. In a recent post, my colleague Anna Dabek commented that while there are some good measures in there, it feels as if there are still several big challenges that need to be tackled.

Any positive spin placed on the £600m funding increase for local government is significantly overshadowed by the operational cost increases that will impact social care providers due to National Insurance increases and wage increases, estimated at £2.4bn.

Social care is craving a reform of funding so desperately needed and long overdue, yet there has been no indication this will rise to the top of the Government’s to-do list any time soon. An already stretched sector is facing more challenges as funding shortfalls will place additional strain on staffing resources. 

The disparity between the emphasis placed on the social care sector compared to the £22bn being channelled to the NHS is a hard one to take, albeit perhaps unsurprising, for those at the heart of social care.

The increase in Carers’ Allowance is one that is welcomed and provides a ray of positivity from the Budget as is the announcement around the increased resources going into planning however, only time will tell whether this translates into retirement housing or supported living for older people.

Despite the widespread frustration, there is some optimism that the Budget will provide greater economic stability that could drive investment into social care. However this would be a longer term impact and therefore not addressing the immediate issues.

Providers will already be turning their attention to planning for the impact of this Budget, much of which will take effect from April 2025, and some will be assessing the viability of their service.

For more information

For more information on the Budget and how this will impact the health and social care sector, please contact me.

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health and social care, budget, government, carers allowance