Sixteen English councils spent more than 80% of their core funding on adult and children's social care last year, underscoring the severe financial strain on local services. This record allocation highlights a growing crisis in local government finance, as rising demand and inflationary pressures push many councils toward bankruptcy.
Record Spending on Social Care
According to Guardian analysis of government figures, councils responsible for social care spent a net £42.8bn on adult and children's services in 2025-26. This represents a record 71.9% of their combined core spending. Adult social care accounted for 44.5%, while children's services took 27.4%. In 2017-18, care costs made up 62.4% of councils' core spending, showing a significant increase over eight years.
The overspending is driven by an ageing population with increasingly complex care needs, rising inflationary pressures, and growing demand for children's social care. As a result, many councils are cutting back on other essential services like road maintenance, libraries, and waste collection to balance their budgets.
Impact on Local Services
The financial squeeze means less money for other vital local services. Councils are being forced to make difficult decisions, often reducing funding for cultural services, parks, and even emergency services. This can lead to a decline in quality of life for residents and further strain on already stretched public services.
Andy Burnham, Mayor of Greater Manchester, has made reform of the care system a key priority. At the Labour conference on Tuesday, the prime minister announced that the government would begin laying the groundwork for a National Care Service to be introduced after the next election. This service would be paid for in part by changing the earnings element of the triple lock.
The government has also accelerated an independent review of adult social care led by Louise Casey. Originally due in 2028, the review is now expected next year and will shape the form of the new care service.
Comparing Social Care Spending Over Time
The table below illustrates the shift in council spending priorities:
| Year | Adult Social Care (%) | Children's Social Care (%) | Total Social Care (% of core spending) |
|---|---|---|---|
| 2017-18 | ~38% | ~24% | 62.4% |
| 2025-26 | 44.5% | 27.4% | 71.9% |
Key Takeaways
- Sixteen councils now spend over 80% of core funding on social care.
- Adult social care accounts for 44.5% of core spending, children's for 27.4%.
- Rising demand and inflation are pushing councils to the brink of bankruptcy.
- Government plans for a National Care Service aim to address the crisis.
- Louise Casey's review, now due next year, will shape the new service.
FAQ
What is core funding for councils?
Core funding refers to the main revenue sources available to councils, including council tax, business rates, and government grants. It excludes specific grants for certain services.
Why is social care spending increasing?
Spending is rising due to an ageing population with more complex needs, inflationary pressures, and growing demand for children's social care services.
What is the National Care Service?
The National Care Service is a proposed government initiative to reform adult social care in England, aiming to provide consistent, high-quality care across the country. It is expected to be introduced after the next election.
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