The True Cost of Care and Support in England
- truthaboutlocalgov
- 2 minutes ago
- 6 min read
In the complex landscape of public services, few areas carry the emotional weight and financial burden of care and support. Whether it's helping older adults live with dignity, protecting vulnerable children, supporting young people with special educational needs and disabilities (SEND), or housing families in crisis, these services are essential and increasingly expensive.
Recent government data paints a stark picture:
Adult social care now costs councils £34.5 billion annually.
Children’s social services are expanding rapidly, with thousands of new providers and rising inspection demands.
SEND provision is under intense pressure, with over £10.5 billion allocated to the High Needs Block and growing deficits across councils.
Temporary accommodation for homeless households has surged to £2.8 billion, with over 160,000 children living in insecure housing.
These figures are more than just budget lines they reflect the scale of human need, the challenge of delivering quality services, and the urgent need for reform. In this blog, we’ll explore just how big these costs are, what’s driving them, and what it means for the future of local government.
The Rising Cost of Adult Social Care in England: 2024–2025
Adult social care in England continues to face mounting financial pressures, with the latest government report revealing a significant increase in expenditure across the sector.
Key Headlines
Total expenditure on adult social care reached £34.5 billion, an 8% increase from the previous year.
Gross current expenditure (GCE) rose to £29.4 billion, up £2.3 billion (9%) year-on-year.
Long-term care accounted for 80% of GCE, totalling £23.6 billion, a 10% increase from 2023–2024.
Client contributions increased by 14% (£0.6 billion), now the largest source of income for local authorities, overtaking NHS contributions.
The average weekly cost of residential or nursing care rose by £77.15 (7%) to £1,185.55.
The average hourly cost of externally-provided home care increased by £1.53 (7%) to £23.56.
Funding Breakdown
Local authorities received £9.7 billion in income, with:
£4.676 billion from client contributions
£4.392 billion from the NHS
Smaller amounts from joint arrangements and other sources
Net Current Expenditure (NCE)
NCE, representing local authority spend excluding external income, was £24.7 billion.
When combined with planned Better Care Fund (BCF) spending, the overall public spend on adult social care was estimated at £27.8 billion.
Trends Over Time
In real terms, GCE has only just returned to its 2008–2009 level of £29.4 billion, highlighting the long-term impact of austerity and inflation.
The report cautions against direct comparisons between finance and activity data due to definitional differences.
Implications for Local Government
The sharp rise in client contributions may reflect increased charging or reduced eligibility thresholds.
Long-term care remains the dominant cost driver, particularly for older adults needing physical support and younger adults with learning disabilities.
The sector’s reliance on local funding mechanisms (e.g. council tax precepts) raises questions about sustainability and equity.
The Cost and Capacity of Children’s Social Care in England: 2024–2025
Children’s social care in England is undergoing rapid transformation, with significant growth in provision, rising costs, and evolving inspection outcomes. The latest Ofsted report provides a detailed snapshot of the sector as of 31 March 2025.
Key Headlines
5,600 children’s social care providers were active or suspended as of March 2025 a 26% increase from the previous year.
Children’s homes rose by 15% to 4,010, offering 15,700 places a 9% increase in capacity.
Supported accommodation providers grew from 260 to 890, now offering 20,200 places across 8,120 premises.
Privately owned provision dominates: 84% of children’s homes and 87% of supported accommodation providers are privately operated.
Inspection outcomes show:
81% of children’s homes received a good or outstanding rating for helping and protecting children.
74% were rated good or outstanding for leadership and management.
94% of other social care providers (e.g. fostering agencies, residential family centres) received good or outstanding ratings.
Regional Distribution
The North West has the highest number of children’s homes (1,020) and places (3,210), but only 18% of looked-after children come from the region.
London has the fewest homes (250), while the South West has the fewest places (790).
Supported accommodation is also concentrated in the North West, with 25% of premises and 18% of places.
Trends and Implications
Children’s homes are getting smaller: newly registered homes have an average capacity of 3, down from 4.
Short-break-only homes and residential special schools show higher rates of outstanding inspection outcomes.
The private sector’s dominance raises questions about cost, quality, and accountability.
The rapid expansion of supported accommodation now regulated since April 2023 reflects both demand and policy shifts.
SEND Funding in England: Pressures, Patterns and Policy Challenges (2024–2025)
Special Educational Needs and Disabilities (SEND) provision in England continues to face intense financial and operational pressures. While a standalone finance report for 2024–2025 is not yet available, recent data and sector insights highlight several critical issues.
Key Trends
High Needs Block funding has increased to £10.5 billion in 2024–2025, up from £9.1 billion in 2023–2024 a 15% rise.
Despite this, local authority deficits in Dedicated Schools Grant (DSG) budgets continue to grow, with some councils reporting cumulative deficits exceeding £40 million.
The SEND Tribunal system remains under strain, with over 90% of parental appeals upheld, suggesting systemic issues in access and assessment.
EHCP (Education, Health and Care Plan) numbers have risen sharply, now exceeding 560,000, a 10% increase year-on-year.
Cost Drivers
Rising demand for independent and non-maintained special schools, where placements can cost £50,000–£100,000+ per pupil annually.
Increased use of private transport and specialist therapies, often not available in mainstream settings.
Staffing costs for specialist teaching assistants, therapists, and SENCOs have risen due to recruitment challenges and inflation.
Policy and Reform
The SEND and AP Improvement Plan (2023) aims to streamline EHCPs, improve mainstream inclusion, and reduce reliance on tribunals.
Local partnerships are being encouraged to co-produce provision maps and improve early intervention.
The Delivering Better Value in SEND programme is supporting 55 councils to address financial sustainability, but results are mixed.
Implications for Local Government
Councils must balance rising demand with constrained budgets, often leading to difficult decisions on eligibility and provision.
There is a growing need for cross-sector collaboration between education, health, and social care to deliver cost-effective, inclusive support.
The sector awaits further clarity on long-term funding reform, particularly around DSG deficits and the role of mainstream schools in SEND delivery.
Temporary Accommodation in England: A Growing Financial Crisis (2024–2025)
The cost of temporary accommodation (TA) for homeless households has surged dramatically, placing immense pressure on local authority budgets and exposing systemic flaws in housing support mechanisms.
Key Headlines
Council spending on temporary accommodation rose by 25% to £2.8 billion in 2024–2025.
The number of households in TA reached 127,890, a 16% increase from the previous year.
Within these households, there are 164,040 children, up 15% year-on-year.
The London Boroughs are particularly affected, with some councils spending over £100 million annually on TA.
Systemic Issues
Housing Benefit reimbursement rules are outdated, pegged to 2011 rental rates, while councils must pay landlords at current market rates.
The Local Housing Allowance (LHA) has not kept pace with rent inflation, making it harder for councils to secure affordable housing.
The private sector dominates TA provision, often at high cost and variable quality.
Impact on Councils
Councils are increasingly forced to use expensive emergency accommodation, such as hotels and B&Bs.
Many local authorities report unsustainable financial risk, with some facing multi-million-pound deficits due to TA costs.
The crisis is exacerbated by rising homelessness, limited social housing supply, and delays in moving families into permanent homes.
Calls for Reform
The Local Government Association (LGA) is urging government to:
Update reimbursement rates to reflect current market rents.
Restore LHA rates to at least the 30th percentile of local rents.
Invest in affordable housing and infrastructure to reduce TA reliance.
Conclusion: A System at Breaking Point Or a Catalyst for Change?
The combined cost of adult social care, children’s services, SEND provision, and temporary accommodation now exceeds £50 billion annually a staggering figure that reflects both the scale of human need and the structural challenges facing local government. These services are not optional extras. They are the bedrock of a compassionate society, safeguarding the vulnerable, supporting families, and enabling inclusion. Yet the current funding model is stretched to its limits, with councils forced to make impossible choices between statutory duties and financial sustainability. If we are serious about building a fairer, more resilient public sector, we must move beyond crisis management. That means:
Reforming outdated funding mechanisms
Investing in prevention and early intervention
Supporting innovation in commissioning and delivery
And above all, recognising that care is not a cost it’s a commitment.
The numbers are big. But the stakes are even bigger.
