CIPFA urges Government to break “destructive cycle” of ‘crisis-cash-repeat’ in adult social care

The Chartered Institute of Public Finance and Accountancy (CIPFA) has warned that for too long, governments have relied on a “reactive approach” to adult social care funding - a model it describes as ‘crisis-cash-repeat’.

Responding to the Health and Social Care Committee’s call for evidence on the cost of inaction on adult social care reform, the CIPFA called for “urgent reform”, following “decades of inaction and short-term fixes”.

It noted that ‘crisis-cash-repeat’ refers to the government failing to implement reform, a crisis occurring in the sector, the government responding with short-term emergency funding measures, and the cycle repeating itself.

“This approach has been ineffective and has not represented value for money for the public pound”, it warned.

In November, the Health and Social Care Committee launched its inquiry on the costs of not reforming adult social care.

The Committee noted it has been estimated that 161,000 hours of homecare could not be delivered between January and March 2024 because of staffing capacity, and in 2023 there were approximately 250,000 people waiting for a care assessment in England.

Responding to the inquiry, CIPFA Social Care Policy Advisor Dr William Burns, said: “For too long, governments of all stripes have relied on a reactive approach to adult social care funding—a model we call ‘crisis-cash-repeat.’ This short-term mindset fails to address the root causes of the sector’s challenges, leaving councils grappling with rising demand and inadequate resources.

“Every delay in reforming adult social care compounds the problem. The current system forces local authorities to divert scarce resources toward immediate statutory duties at the expense of preventative measures. This perpetuates a vicious cycle where unmet needs grow, costs rise, and the opportunity for meaningful reform diminishes.”

He added: “CIPFA calls on the Government to act urgently to break this destructive cycle. By moving away from emergency funding and taking a longer-term view, we can build a sustainable adult social care system ready to meet the increasingly complex needs of our ageing population. Investing in system reform now will yield better outcomes, deliver value for money, and create a system that supports people to live longer, healthier, and more independent lives.”

CIPFA’s full consultation response can be read here.

A Department of Health and Social Care spokesperson said: “We are tackling the challenges facing adult social care and taking the first steps towards building a National Care Service by introducing legislation that will establish the first ever Fair Pay Agreement for care professionals and increasing the Carer’s Allowance earnings threshold by over £2,300 - the biggest rise since the 1970s.

“We are giving local authorities an additional £3.5 billion in 2025-26, including a £680 million increase in the social care grant to support the sector.

“Ensuring there is a stable economy is one of the foundations of our Plan for Change, which will deliver stability, growth and investment for communities across the UK.”