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The financial imperative
The adult social care system is at a financial breaking point, presenting significant risks to the people who need social care support to live their lives.
The ADASS Autumn Survey 2024 found:
While the 2024 Autumn Budget allocated an additional £880 million for adult and children’s social care, councils have warned this will not be enough to offset rising demand, workforce shortages, and cost pressures, including the impact of National Insurance changes and the National Living Wage increase.
It is of course positive that many people are now living for longer than in previous generations, and society is adapting to respond to the need for support that this change brings with it. Within 20 years, the number of people aged 85+ will increase by almost 75%, and if the system remains unchanged, care need from those aged 65+ will rise by 80%. The trajectory is unsustainable without a fundamental shift towards proactive prevention.
Investing in prevention is not just the ethical choice - it makes sound financial sense. The Local Government Association has projected that for every £1 invested in earlier preventative support, councils can save £3.17 in future social care costs. Reducing hospital admissions, delaying the need for long-term care, and supporting people to live independently for longer will ease the pressure on both social care and the NHS, creating a more sustainable system.
The Local Government Association’s report on "Earlier Action and Support: The Case for Prevention in Adult Social Care and Beyond" builds a strong case for investing in preventative measures within adult social care. By utilising the Prevention Spending Model, it demonstrates that early interventions offer significant financial returns. For every £1 invested in these programs, £3.17 in savings are generated, potentially leading to £11.1 billion in savings across England. This includes £7.6 billion from direct cost reductions in healthcare and social services, along with an additional £3.5 billion from broader societal benefits.
The model showcases a range of preventative services, from health and social care initiatives to community-based programs, all of which contribute to reducing future care needs and improving overall well-being. Notably, many of the societal benefits, such as enhanced community resilience and a reduction in health crises, are harder to quantify but are nonetheless vital in building stronger, more sustainable communities.
While the financial savings provide a compelling argument, the report acknowledges that the true impact of early action may extend far beyond what is captured by the model. By taking a more holistic view, integrating multiple interventions, and scaling up these efforts, the model advocates for a system where preventative care becomes central to public policy. This case for investing in prevention aligns with broader goals of not only reducing costs but also fostering healthier, more independent lives for those in need of support.
