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What the Autumn Budget means for social care employers – and why NCF says it falls short

1 December, 2025

The Chancellor’s Autumn Budget was delivered in the House of Commons on Wednesday, setting out a series of measures that will shape the financial landscape for employers across the country. For those in the social care sector, the announcements were limited but still significant — and the National Care Forum (NCF) has been quick to highlight what the Budget does, and crucially does not, address.

Key changes for employers

National Living Wage increases (from April 2026):

  • Over-21s: rising by 4.1%, from £12.21 to £12.71 per hour
  • 18–20-year-olds: rising by 8.5%, from £10 to £10.85 per hour

These increases will place additional pressure on already stretched providers, particularly given the absence of accompanying funding.

Employer National Insurance:

  • The secondary threshold will remain frozen at £5,000 until 2031, effectively increasing employer contributions in real terms as wages rise.

NCF’s response – “A missed opportunity”

Vic Rayner, CEO of the NCF, has expressed deep disappointment in the Budget’s silence on meaningful social care investment. She notes that, unlike last year, no dedicated funding has been announced to support wage rises or structural changes in adult social care, despite growing pressure reported by the Association of Directors of Adult Social Services (ADASS)

She highlights three major gaps:

  • No social care workforce strategy, at a time when tougher migration rules risk driving workers away while domestic recruitment continues to fall.
  • No investment in social care innovation, despite a national push for health technology, leaving the millions receiving care at home overlooked.
  • No acknowledgement of the fragility of the sector, leaving care providers to absorb wage increases and operational pressures without support.

In her words, this Budget “neither recognises the contribution nor the real cost of adult social care,” marking another missed opportunity to stabilise and reform a vital public service.

About the National Care Forum.

BCOP is a member of the National Care Forum, an organisation which brings together more than 170 of the UK’s leading social care organisations, representing large numbers of care providers, offering thousands of services across the country, which are not for profit and always at the heart of community provision. Collectively, these organisations deliver more than £2.3 billion of social care and support to more than 277,000 people. The NCF membership body collectively employs more than 124,000 staff and 14,000 volunteers.

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