Council adult social care costs have gone up for fourth consecutive year, leading to overspend of £715m: ADASS

According to the ADASS Spring Survey, published today (15 July), councils are supporting an increasing number of adults who have complex care needs.

As a result, the overall council overspend on adult social care budgets last year was three-quarters of a billion pounds. 

According to the survey, three-quarters of Directors reported an increase in the number of people presenting to adult social care who were or would have previously been eligible for NHS Continuing Healthcare (CHC).

Meanwhile, councils reported that, despite growing needs, Integrated Care Boards are “failing to invest in services vital for supporting people in the community”, including CHC, section 117 funding for mental health (S117) and joint funding packages.

Some 86% of Directors also reported an increase in mental health needs in their local areas from 2025 to 2026, and 77% of Directors reported either an increase or a significant increase in younger people presenting with mental health needs from the community. 

Looking at costs related to young people, the report noted that the number of young people (18-24) supported by adult social care is increasing.

ADASS said: “Their needs are more complex – such as complex mental health issues like acute trauma, and profound physical or learning disabilities – meaning their care packages can be high cost.

“Many of these young people have SEND (Special Educational Needs and Disabilities) as children or are previously cared for, which represents a challenge whereby children’s services and adult’s services need thorough, integrated planning to ensure a smooth transition when those young people turn 18.”

Looking at carers, the survey revealed that for the second year running, the proportion of councils positively investing a rising proportion of their budget in unpaid carers has fallen.

The report noted: “Some 39% of councils had a positive investment strategy in 2025/26, while only 35% are looking to spend more in this area in 2026/27. This is even though 73% of Directors report an increase in the number of unpaid carers needing support, and the number of people waiting for a carers assessment (including young carers and parent carers) has increased significantly.”

Turning to waiting times, the survey found that more than 400,000 people are waiting for an assessment, care and support, a direct payment, or a review.

ADASS warned that each person waiting could have an unmet, under met or wrongly met need, “potentially impacting their independence and wellbeing”. 

Last month, Baroness Louise Casey told MPs that reform of the adult social care system will involve a conversation with the public on their appetite for “a renegotiation of the social contract”.

Appearing at a Health and Social Care Committee hearing, the chair of the Independent Commission on Adult Social Care stressed that a National Care Service is “not beyond the wit of anybody, including previous governments, to have set out what a national care service would look like”.

However, she added the first step would be to work out what the National Health Service is currently providing, and where care fits within that or alongside it.

Andy Burnham, who is set to become Prime Minister, has said that he wants to make reform of the adult social care system a priority.

ADASS said: “If Andy Burnham becomes the new Prime Minister, councils across the country will hope his public commitment to reforming adult social care comes to fruition, helping them to deal with the highest levels of social care need and cost they have faced.”

The ADASS 2025 Spring Survey reported council overspends on social care to be £774mn. The report warned that care leaders had reduced spending on neighbourhood health and prevention by more than 10 per cent, as they were “forced to prioritise” people in crisis.

One year on, the ADASS continues to warn of a “disconnect” between government ambitions for adult social care and the funding provided to deliver them.

Phil Holmes, President of ADASS, said: “Councils continue to be placed under huge financial pressure, with no signs of this abating. Behind every number there is a person needing support, a family struggling or an unpaid carer taking on huge responsibility. 

“There are areas that need particularly urgent attention. The ongoing reduction in the number of people receiving NHS Continuing Healthcare flies in the face of our ageing population. Increasingly frequent funding disputes are leaving people and families facing uncertainty about whether they will get the care they need, or whether their existing care will continue to be possible. This year’s ADASS survey provides even more evidence that NHS Continuing Healthcare urgently needs national reform. 

“This must be just the start. A new Prime Minister is about to take the helm and Baroness Casey is saying that adult social care needs fundamental reform and sustainable investment with no more ‘sticking plasters’. We must make sure that our government uses this momentum so that next year’s ADASS national survey signals positive change rather than more of the same”.

Cllr Glen Sanderson, Adult Social Care Spokesperson for the County Councils Network, said: “The ADASS Spring Survey highlights the growing and urgent challenges facing councils as they work to ensure people get the care they need. As ADASS demonstrate, and as Baroness Casey set out last week, social care reform is an issue for all of us, and one that extends beyond care for older adults and questions of who should pay.

“With around half of councils’ typical adult social care expenditure now spent on working-age and lifelong disabled adults, we must get reform right for these individuals as well as families and carers, and for the many people who work in adult social care.

“We ask the government to continue backing the Casey Commission and its commitment to cross-party working, and to ensure there is enough funding for councils to meet the growing demand for care and cover rising costs for employers in the meantime.”

 A Local Government Association (LGA) spokesperson said: “This annual survey highlights the significant pressures councils are under and spotlights their ongoing hard work seeking to ensure everyone who draws on care and support can live independent lives.

“After successful efforts in recent years to reduce the number of people waiting for a care assessment or support service, it’s concerning to see this number rise. This is another reminder of the difficult decisions councils are having to make and the real impact this has on their ability to meet their statutory responsibilities.

“The number of unpaid carers needing support continues to rise. This may be partly due to the efforts councils are making to identify unpaid carers, but it’s particularly concerning that requests for support following carer breakdown have also increased. Unpaid carers need to be systematically identified and supported, with full recognition of the contribution they make to individuals, communities, public services and the wider economy.”

The spokesperson continued: “Although overall overspend has decreased slightly this year, it remains high and, as a key issue for four out of five councils, is impacting spending on other council services. At the same time, councils’ capacity to spend on planned prevention is shrinking, with knock-on effects elsewhere in health and care services.”

Lottie Winson