For UK social care providers
Council rates haven't kept pace with your costs, and the gap is now structural
Across England, the difference between what commissioners pay and what care actually costs has grown into a substantial structural gap. Each year you absorb that shortfall, the viability of your service erodes further.
Two minutes. Solva follows up with specific fee negotiation and diversification options.
- Providers struggling to recruit and retain qualified staff due to inability to offer competitive wages and benefits
- Reduction in the quality or scope of services offered to clients to cut costs and maintain financial viability
- Increased reliance on agency staff, leading to higher operational costs and potential inconsistencies in care delivery
- Providers exiting the local authority commissioned market or facing insolvency, reducing choice and access for service users
- Reduced capacity and increased waiting lists for care services
- Compromised quality of care due to staffing pressures and cost-cutting measures
- Reduced profitability and increased risk of insolvency for care providers
- Increased reliance on private funding or top-up fees from service users
- Delayed or inadequate care leading to poorer health outcomes for service users
- Increased hospital admissions and delayed discharges due to lack of community care capacity
- Damage to the reputation of local authorities and the wider social care system
- Erosion of public trust in the ability of the system to provide adequate care
Councils in England now face a funding gap of £6.2 billion over the next two years. (LGA, 2024)
Frequently asked questions
Why does this problem persist?
Local authority fee rates have not kept pace with care provider cost inflation. The gap between what it costs to deliver care and what commissioners pay is widening every year, creating a structural financial crisis across the sector.
What is the cost of leaving it unaddressed?
Analysis of the government's fair cost of care exercise by Care England found a £1.5bn funding gap between what local authorities pay social care providers and the real cost of care. (Care England, 2024)
This is exactly what I do with UK private practices. Answer the few questions above and I'll come back personally with where to start. Paul.