Social Care Crisis: Nearly 100,000 Denied Support in England After Decade of Funding Cuts

Funding cuts have quietly transformed England’s social care system, leaving thousands of vulnerable adults without the help they once qualified for. As local budgets shrink, eligibility narrows and the burden shifts to families.

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England social care cuts. credit : shutterstock | en.Econostrum.info - United Kingdom

England’s adult social care system is under increasing strain, with fewer people receiving support despite growing levels of disability across the population. Long-term reductions in local authority budgets have led to a shrinking of services, raising questions about the system’s capacity to meet basic care needs.

Publicly funded care has become harder to access, particularly for older adults and those in deprived areas. With eligibility criteria tightened and financial thresholds frozen, more families are being left to shoulder responsibilities that were once met by the state. 

Financial Pressures Cut Deep Into Social Care Access

Almost 100,000 adults in England who would previously have qualified for state-funded social care are now excluded due to funding restrictions, according to new analysis by the Institute for Government (IfG)

The figures reveal that long-term subsidised care has fallen significantly faster than the growth in disability rates, pointing to a widening gap between need and access.

This development reflects the cumulative effect of more than a decade of fiscal constraint. Since 2010, local government budgets have seen sustained reductions, with knock-on effects for core services. 

According to the Institute for Fiscal Studies, councils’ real-terms spending power per person has dropped by 18%, leaving authorities struggling to meet rising care demands with dwindling resources.

Rationed Support Leaves Families Under Strain

The number of adults receiving long-term social care in England has dropped by over 250,000 since 2003–04, the IfG report found. That year, 2.3% of the adult population received long-term support. In 2023–24, the figure stood at just 1.4%. 

The decline is most notable among those aged 65 and over, with only 3.6% receiving care today compared with 8.2% two decades earlier.

Eligibility thresholds and rationing mechanisms have been key tools for managing this decline. According to the report, local authorities have responded to fiscal stress by tightening assessments and reducing the duration of care packages. 

The government’s decision to freeze the financial threshold for care eligibility since 2010 has further limited access. The same approach has been confirmed for 2025–26.

This restricted provision has broader implications. Stuart Hoddinott of the IfG stated: 

“Financial pressure means local authorities with high levels of demand are forced to ration services to people who would receive care elsewhere.” 

As a result, unpaid care has increased, often falling on relatives who reduce working hours or leave employment to support loved ones. This pattern affects women and low-income families disproportionately, contributing to wider social inequalities and reducing workforce participation.

A comparison with disability prevalence underscores the extent of unmet need. If access to care had grown in line with disability rates, nearly 98,000 more people would be supported by the state today, according to The Guardian’s analysis of the IfG data.

Uneven Funding Fuels Regional Disparities

The current funding model has also created regional inconsistencies. According to the Nuffield Foundation, the formula used to allocate government funds to councils has failed to adequately reflect levels of deprivation, leading to pronounced gaps in care provision across England.

Last week, the government opened a consultation on revising this formula, proposing a shift of resources away from more affluent areas in the South-East towards deprived and rural communities. 

At the same time, ministers face mounting pressure to offset costs resulting from increases in the national minimum wage and employer contributions to national insurance. The Nuffield Trust estimates these changes will cost the sector nearly £3 billion by 2025–26.

While a long-term funding settlement remains uncertain, experts continue to warn that rationing care comes with hidden costs — especially when unpaid carers are pushed to fill gaps in the system. As the IfG notes, “This is both unfair, and indirectly expensive for the government.”

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