Third of social care providers forced to shut services, report warns

Social care providers are facing a ‘perfect storm’ of workforce challenges and rising cost pressures of service delivery, as they are forced to turn down admissions and shut services, according to research from learning disability charity Hft.

The research found three quarters of learning disability care providers turned down new admissions to services in 2021, while more than a third had to close their services permanently due in part to an average staff vacancy rate of nearly 16%.

While nearly all providers said that increases in staff wages could help recruitment and retention challenges, Hft’s latest Sector Pulse Check report found 80% of those surveyed say the fees they receive from local authorities to deliver care will not be enough to cover their wage bills.

‘Social care staff should be paid a fair wage, one which is commensurate with the responsibilities of the job and that will help reduce high turnover and vacancy rates in the sector,’ said Kirsty Matthews, CEO of Hft.

‘Despite the introduction of a higher National Living Wage earlier in April, record inflation means that, in real terms, most front-line staff will not see a pay uplift and workforce challenges will persist as employees cope with the cost of living increase.’

The report found one in 10 providers will need to cover 20% of their wage bill from their own reserves, rather than through fees paid by local authorities.

On average, each provider surveyed will need to find £640,000 to cover the cost of wages, stretching the already finite resources of providers further.

This is at a time when the sector is in an increasingly precarious financial position, with 71% of providers reporting they are either in deficit, with costs exceeding funding, or that their surplus has decreased. This has increased from 56% in 2020.

The charity is now calling on the Government to urgently redirect additional funds from the Health and Social Care Levy into social care from year one to ensure there is sufficient funding to cover wages which reflect the real-term cost of living and attract more individuals to work in the sector.

Over 20 CEOs of learning disability care providers are supporting this call through a joint letter from Hft to the Care Minister.

Photo by Nathan Anderson