Perfect storm of National Insurance rise and increased demand for support could force local carer organisations to close
Local carer services are at serious risk of closure from a perfect storm of National Insurance increases, rising demand for support and reduced capacity, new figures from Carers Trust show.
The charity, which has a network of 130 local carer organisations across the UK, warns urgent action is needed to stop some of these services being lost forever, leaving unpaid carers without the vital support they need.
Local care organisations provide vital support, advice, breaks and grants for the UK’s six million unpaid carers. The Chancellor’s decision to increase employer National Insurance contributions in October’s Budget has ramped up financial pressure on these organisations. The change will cost them £3 million on top of a further estimated £4 million through changes to the National Living Wage.
And new figures show they are under serious pressure even before that increase comes in. The Carers Trust analysis shows the130 local carer organisations in the charity’s Network saw a 4% rise in demand for support from carers in 2023/24. The Carers Trust network now has 1,094,916 registered carers, up from 1,047,823 the previous year. However, capacity fell 3% in the same period as funding and staffing fell, with just under 366,000 carers directly supported (down from 378,617 the year before).
While the unmet demand for support from carers is clearly growing, the organisations have seen a 13% real terms reduction in the value of contracts from local authorities and statutory health organisations for commissioned services since 2021/22.
With council budgets under pressure, these contracts are increasingly asking them to deliver more for less. This is squeezing resources earmarked for other services. In response, many local carer organisations are being forced to reduce specialist services like dementia and learning support in order to keep their overall service running.
Nearly two-thirds (63%) of the local carer organisations said fundraising and sustainability is a major challenge, while 59% said demand for services was outstripping supply. The cost-of-living and problems recruiting staff were also raised as major concerns.
Carers Trust is calling on the Government to ensure funding is available to cover these additional costs, with local authority and NHS commissioners giving sufficient uplifts to contracts for carer services.
Carers Trust CEO, Kirsty McHugh said:
“Local carer organisations are facing a perfect storm of National Insurance rises, increased operating costs and demands from commissioners to do more with less. If this continues, many of these vital services could be lost forever.
“Our analysis shows the need for support is greater than ever and many unpaid carers tell us they’re at breaking point. Without the lifeline these services provide, they won’t be able to carry on. That would spell disaster for an already creaking social care sector. Local and national governments need to take urgent action now, before it’s too late.”