Post Election: The role of SME’s in the wider health economy 

Social Care as a sector is a rich patchwork of unique and interesting services supporting those who need care and support. Although the term conjures up a vision of older people, which is a primary group, it is much more than that as it supports anyone who falls out of acute care interventions or is not eligible for it. This will include people in various conditions and setting with age being no barrier. Elections manifestos over the past three decades have seen the role of social care being portrayed as a ‘problem to solve’ with promises of solutions which are quickly broken.

Of the circa 18000+ care providers delivering social care services about 83% are small to medium sized providers, so make up the backbone of the sector. The sector contributes circa £55 billion (SfC 2024) to the economy against a total government investment in social care of £28.4 billion (Kings Fund 22/23). Clearly, any will to ‘solve social care,’ has been deliberately sidelined for decades by successive governments; this is not only short sighted but also perilous for those who rely on it, which includes colleagues in the NHS. What we need now is a government which has the will to deliver and exact the change that is needed and promised.

The election brought about the ‘change’ the public wanted, so the question now will be how that transfers into a change for the better. We already know that there is a Manifesto Commitment for a Fair Pay Agreement, which all providers will welcome if funding accompanies it to make the difference needed. There is no point if, like with the NLW, providers are legislated to deliver change but there is no commitment to fund the increase: sme’s are not in a position to continue to subsidise government in this way whilst already contributing to the overall economy, especially when the there is no acknowledgement or sufficient investment to drive the agenda forward.

It is also important to note that the traditional concept of social care has evolved into a mini-cottage hospital service without any additional funding to support the complex health care conditions of those in our care. Under NHS services these conditions are funded and supported but once we transfer into social care the funding evaporates and if commissioned

through a local authority, falls to one-third: the condition is the same only the setting changes!

The role of SME’s in the wider social care sector is pivotal and always has been, however with the current funding models it is becoming increasingly impossible to maintain financial equilibrium. The workforce challenges also have a greater impact on SME’s, as they are not in a position to compete with corporate, the not-for-profit, corporates or indeed the NHS. Environments, in sme’s, often enable a more personalised space which feels more familiar and reminiscent of their own homes.

That said, it is important to acknowledge that our sector is rich in choice so people can determine their preferences based on location and affordability. What this government must not do is further create a two tier system which disempowers choice based finance.

National Care Association

Nadra Ahmed CBE
Executive Co-Chairman @ NCA

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