The Government’s plans to reform adult social care are at serious risk of collapsing unless the financial implications of continuing with the status quo are fully understood and accounted for, a cross-party group of MPs has warned.
In a hard-hitting report published on Monday, the House of Commons Health and Social Care Committee stated that while the moral case for reform is indisputable, it must be underpinned by a comprehensive financial rationale. The intervention comes just days after the formal launch of the Casey Commission, chaired by Baroness Louise Casey, which aims to lead a decade-long transformation of the beleaguered social care sector.
The committee’s findings paint a stark picture of a system in crisis, with £32 billion spent on adult social care in the year to March 2024, yet millions still going without the support they need. MPs highlighted that around two million people aged 65 and over, along with 1.5 million working-age adults, are not receiving adequate care.
One of the gravest concerns raised was the financial burden placed on individuals, with one in seven older people facing care costs exceeding £100,000. Meanwhile, 1.5 million unpaid carers are delivering more than 50 hours of care per week, often at great personal and financial cost – many forced to reduce work hours or leave employment entirely.
Layla Moran MP, chair of the committee, warned that social care is too often overlooked as a contributor to economic growth. “In our inquiry, we heard that an investment of £6.1 billion could generate a return of £10.7 billion – a 175% return on investment,” she said.
She added: “Unless the Government measures the true cost of inaction and can make a convincing case to the Treasury, the recommended reforms that come out of the Casey Commission will be doomed to fail. We want this report to change the narrative on social care, and to act as a catalyst for meaningful and lasting reform.”
The committee’s report also underscored the mounting strain on local authority budgets, which are said to be “buckling under the pressure” of adult social care demands. Simultaneously, the care provider market is in “distress”, struggling with rising costs, including underfunded increases in the National Living Wage and National Insurance contributions.
Despite these challenges, MPs expressed frustration that the Government lacks a clear understanding of the extent of the system’s failings, due to a lack of quality data on the outcomes of care delivery.
The Casey Commission’s first phase is expected to report in 2026, with some reforms potentially not implemented until 2036. Critics within the sector have labelled this timeline “disappointing” and warned it will come “far too late” for many older people currently in need of care.
In response, Care Minister Stephen Kinnock said: “We are grateful for the committee’s work and will respond formally in due course. Far from inaction, this Government has hit the ground running with our Plan for Change, including up to £3.7 billion in funding, 15,000 home adaptations, a £2,000 uplift in Carer’s Allowance, and the first-ever Fair Pay Agreement for care workers. But we acknowledge that deep reform is needed – and that’s why Baroness Casey’s independent commission is so vital.”
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However, the Liberal Democrats rejected the Government’s narrative, warning that delay is no longer an option.
Helen Morgan MP, the Lib Dem spokesperson for social care, said: “There could not be a starker contrast between the Government’s complacency and the committee’s findings. People are paying the price – literally and emotionally – for a system that’s broken. Reform must come now, not years down the line.”
The committee urged the Government to commission urgent research to quantify the true cost of doing nothing, including both economic and personal impacts. This evidence, they argue, must be available before the Casey Commission’s final recommendations, to enable a full cost-benefit analysis and give reform a real chance of success.
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