The government has published its 2025 Spending Review, outlining how it will allocate funding up to 2029-30. While there are some signs of progress for the care sector, many of the core challenges – including workforce shortages, low pay and underfunding – remain only partly addressed.
Key Headlines for the Care Sector
- Funding for Adult Social Care to Rise
- The Spending Review allows for over £4 billion in additional funding for adult social care by 2028-29 compared to 2025-26.
- This includes an increase in the NHS’s contribution to social care through the Better Care Fund, which may help support integrated working at local level.
- An independent commission, led by Baroness Louise Casey, will report in 2026 with proposals for long-term reform of adult social care.
- Local Government Spending to Increase
- Councils will receive an average 3.1% real-terms increase in core spending power annually through to 2028-29.
- This includes an extra £3.4 billion in grant funding by 2028-29, which may benefit local authority care services depending on how each area allocates its budget.
What About Staffing and Pay?
The review acknowledges pressure on public sector pay and productivity, but does not offer a dedicated funding uplift for care staff pay or workforce development. There is no new national pay framework for social care, and while the NHS receives substantial investment, the social care workforce remains outside any ringfenced commitments.
A new independent commission has been tasked with looking at how to improve adult social care within existing resources, but sector leaders may feel this falls short of urgent, immediate action.
While the additional funding for adult social care services is a step forward, the 2025 Spending Review does not directly address the pressing concerns around staff recruitment, retention and pay. For care providers and professionals already operating under pressure, the sector will continue to require strong local leadership, cross-sector collaboration and further reform to meet rising demand.
