VODG Writes to The Chancellor Ahead of October 2024 Budget

VODG has written to the Chancellor urging investment in social care - in both the short and long term. 

An abridged version of our letter is below. 

Social Care Funding | October Budget 2024

The Voluntary Organisations Disability Group (VODG), represents over 100 organisations working alongside and supporting disabled people, families and carers. We are writing ahead of the Budget to set out the importance of investing in social care, to put services on a surer footing in both the short and long term. 

Social care and the third sector’s community-based provision are critical to achieving many of the government’s priorities, including the government’s three shifts to reform the NHS, ambition to build a fairer society and growth agenda.

The care sector employs 1.5 million people[1] and contributes over £60bn to the economy[2]. Our members also provide essential support for disabled people seeking employment and ensuring people stay healthy in work. Yet social care will only be able to thrive and deliver its full potential to people in need of support, local communities and the nation, if it is put on a surer footing.

We understand the government’s commitment to addressing the £22bn deficit it has inherited but urge Ministers not to ignore the current instability of the social care system. Local government is unable to fund the services people need while the NHS continues to focus largely on acute provision, waiting times and the short-term freeing up of beds, rather than building the right support in the community.

Millions of disabled children and adults in the UK rely on state funding to enable them to access their legal entitlements to care and support. The chronic underfunding of councils means services for disabled people of all ages and their families are closing.

The charities being commissioned to provide essential support are facing an impossible situation: committed to delivering services but with operating costs far above commissioned fee rates. A survey of charities last year found 73% were unable to meet the current demand for the public services they deliver with the funding they receive[3]. Furthermore, 44% of adult social care providers have been left with no choice but to turn down new admissions due to staffing shortages[4].

This year charities have had to contend with a welcome but unfunded Real Living Wage (RLW) increase of up to 12%[5] being met with uplifts of far less - 0% in many cases; the impact of rising costs; and increasing demand without adequate uplifts to meet people’s needs.

Charities are being told by commissioners to address gaps in funding through public fundraising, reserves or cross subsidy. This is simply unacceptable and not a sustainable way to fund most needed frontline services.

While the challenges facing social care are well-document, it is worth reiterating the findings set out in the ADASS Spring Survey, that;

• As of 31 March 2024, there were a total of 418,029 people waiting for an assessment, care or direct payments to begin or a review of their care plan
• In 2023/24, 72% of councils overspent on their adult social care budgets. Of these councils the proportion using reserves as a source of funding to address their overspends increased from 72% in 2022/23 to 95% in 2023/24. This one-off expenditure is unsustainable.
• The overspend nationally for 2023/24 totalled £586m (based on 145 responses), up significantly from £74m in 2022/23.
• The current budgetary challenges facing adult social care, and local government more broadly, mean that just over half (51%) of Directors of Adult Social Services are less than confident they can meet their legal duties for adult social care.

The government will not be able to meet the growing demand for social care, or realise its growth, employment and economic ambitions without a thriving third sector. While more funding is needed, there is a vast amount that can be done within current parameters to make more efficient and outcome-based use of resources.

We are keen to work with the government to put essential services on a surer footing so disabled people can live the lives they choose. We are therefore calling for the government to:

• Address the funding deficit facing local government, which means many charities are being underfunded and some expected to cover the costs of public services through their reserves, fundraising or cross-subsidy.
• Include disabled people, Deaf and Disabled People’s Organisations, families and third sector providers in the design of new ways of working, including further integration between the NHS, social care, education and employment.
• Confirm plans for a royal commission or other such review into the state of social care, akin to the swift review led by Lord Darzi of the NHS.
• Make an early commitment to fully fund current adult social care services, including the Real Living Wage increase announced by the previous government.
• Commit to fully fund reforms related to the Employment Rights Act, to avoid adding to the financial burden of unfunded commitments passed onto employers.
• Consider ways in which parity between the NHS and social care can be applied, including VAT reforms and (re)allocation of NHS capital spend beyond current rules, to have a wider, positive impact in the community.

Civil Society can play a significant part in co-designing new solutions, and we welcomed the recognition and plans to work closely with the third sector and others in Labour’s manifesto. Only by working together will we achieve the step-change needed to ensure disabled people can live the lives they choose.