The Autumn Budget brought little good news for the health and social care (H&SC) sector, and there is a general feeling that the challenges facing H&SC providers were almost completely overlooked
Headline announcements included new grant funding for adult and children’s social care and an increase in the Carer’s Allowance weekly earnings limit to the equivalent of 16 hours at the National Living Wage. Both changes are a step in the right direction but fall a long way short of providing the extensive financial support the sector needs.
Increasing H&SC funding by £600 million is frankly a drop in the ocean when compared to the estimated £2.4 billion the National Insurance and wage increases will cost H&SC employers. Given that the sector’s financial struggles are far from disappearing, there is a real need for funding models that support and streamline services in the long term.
With staff shortages and stretched resources placing huge strain on H&SC providers, the ongoing failure of any Government to reform the sector must be addressed. It’s encouraging to see that the Health and Social Care Committee have launched an inquiry into the cost of inaction on social care reform but in the meantime, providers will have little choice but to increase fees. For those delivering publicly funded services if commissioners cannot meet those fees it will lead to exits from parts of the market.
Moving forward, we hope promises made elsewhere in the Budget will be positive for the sector. For example, pledges to increase resources for planning authorities should be carried out and where feasible, translated into more retirement housing and supported living provision.
Equally, if the markets view the Budget as bringing greater stability this could drive greater investment into social care. However, the changes to CGT rates could discourage business sales, and therefore disrupt private investment in the H&SC sector.
Central Government’s agenda to deliver community-based solutions for delayed patient discharge could see a funding increase or adjustment in the social care pot, but this could take months to transpire and will only assist providers offering older people’s care.
With the H&SC sector facing an uncertain future, now more than ever, collaboration and a clear, long-term plan from the central Government to address the biggest gaps in social care services are urgently needed.