STATE OF CARE: Funding and staffing pressures hit providers’ profits

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The financial pressures on social care providers caused by funding and staffing challenges have been laid bare by the CQC.

The latest State of Care report reveals analysis of care providers covered by the CQC’s Market Oversight scheme, which represents around 25% of the adult social care market in England.

Data gathered by the CQC shows providers’ profits fell by one percentage point between September 2016 and September 2018 due mainly to a 9.6% rise in staff costs, driven by a 28% increase in agency use.

According to the ADASS budget survey 2019, 86% of adult social services directors believed the National Living Wage will be the biggest driver of increases in unit costs of residential, nursing and domiciliary care.

Other cost pressures are being caused by auto enrolment in workforce pensions, a levy on UK employers to fund new apprenticeships and staff shortages.

Kate Terroni, chief inspector of adult social care, said: “Social care has received some additional investment from government over the last few years but that has tended to be short-term. We need a long term commitment to ensure we have stability in the market.”

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