More than 80 percent of councils in England are expected to overspend their adult social care budgets this year, an annual survey of the sector has found.
Adult social care faces "intensifying" financial pressures, as local authorities are forced to make in-year budget savings on top of those planned for 2024-2025, the Association of Directors of Adult Social Services (ADASS) has warned.
The charity, collaborating with all 153 councils in England, said that over 35 percent of directors have implemented in-year budget cuts, while 81 percent of councils are projected to exceed their adult social care budgets.
"These are not the conditions for adult social care to thrive," ADASS said.
In the last two years, a number of councils, including Nottingham City Council and Birmingham City Council, announced effective bankruptcy. Local authorities have pointed to high inflation and rising demand in social care, for children and adults, as reasons for budgetary overspends.
Extra cash will help councils achieve the government's goal of shifting health and social care from "sickness to prevention," the report said, adding that delayed discharge was one of the most significant barrier to preventative care.
The total projected overspend on 2024-2025 adult social care budgets is estimated to reach £564 million. This is slightly down from last year's figure of £586 million but a significant surge from £73.7 million in 2022-2023.
The report comes after Labour's Budget announced increases to Employer National Insurance contributions (NICs), which raised concerns among employers over added costs and possible impact on wages among workers.
The chief executive of Care England, Martin Green, called the government's Budget a "missed opportunity" and the government's £600 million grant for social care a "drop in the ocean."
Responding to the ADASS survey, the Nuffield Trust think tank said that the adult care sector needs "meaningful" financial support, as opposed to "sporadic short-term handouts" by the government.
"With ADASS revealing councils are now on course to overspend on adult social care budgets by £564m in this financial year alone, the report starkly illustrates last week's Budget announcement of £600m extra for adult social care next year likely won't even touch the sides," said Nuffield Trust Deputy Director of policy Natasha Curry.