Select committee: Health and Social Care Committee

Adult Social Care Reform: The Cost of Inaction

Closed Opened 31 Oct 2024 Closed 18 Aug 2026 15 recommendations 12 conclusions
Inquiry scope (the committee's words)
Successive governments have presented reform ideas for adult social care, yet few of these have been implemented. This inquiry seeks to understand what this inaction is costing. We will investigate the cost of inaction to individuals, the NHS, local authorities and also to the wider economy and HM Treasury, focussing not only on the financial cost, but also on the personal costs and on potential benefits that are being missed. The inquiry will consider social care for both older and working age adults.

Where it stands

The inquiry is closed, opened 31 October 2024.

The committee has published 1 report, most recently 2nd Report - Adult Social Care Reform: the cost of inaction on 5 May 2025.

The government's response

Published 9 July 2025. The deadline was 5 July 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government shares the committee's view that adult social care is under significant pressure and needs reform, responds to each recommendation, and says it does not accept some, including a new cross-government impact assessment, while referring others to the independent commission led by Baroness Casey.

  • On unmet need, the government says it would be "challenging to publish an annual assessment of the level of unmet care needs", citing limitations in existing data and the complexity of defining care needs.
  • It says it "does not, therefore, accept" the recommendation for a new cross-government impact assessment on workforce policy changes, preferring existing impact assessment procedures. It also does not intend to commission a dedicated study of the cost of inaction, and does not think a separate growth strategy for the sector is "proportionate or necessary".
  • On the Fair Pay Agreement, it will "begin the Fair Pay Agreement consultation this year", with secondary legislation and the negotiating body to follow in 2026. It is committed to establishing the first agreement within this Parliament.
  • It agrees that publishing delayed discharge cost estimates would "in principle" improve transparency, and will "explore how best to publish cost data" with caveats. It will set out the Better Care Fund approach for 2026 and beyond "in due course".

Read the government's response ↗ Report an error

Recommendations and conclusions 27 shown

1: Adult social care system fails to meet needs and lacks robust data for effective reform.

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
The current adult social care system does not sufficiently meet the needs of the population despite the efforts of millions of paid and unpaid carers. Financial pressures mean that those needing care sometimes only receive basic support, far from enough to enable them to live fulfilling lives. Despite this, costs continue to increase, with the Government, and taxpayers, currently paying £32 billion a year for a broken system. The Government does not have a robust understanding of the extent of the current system’s failings to provide people with the care they need. Nor does it have robust data on the outcomes of delivering high quality care. Without this, it will be unable to make a clear case for reform. (Conclusion, Paragraph 20)

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2: Publish annual assessment of unmet care needs for adults, including methodology and supporting data.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
The Government should publish an annual assessment of the level of unmet care needs for both older adults and working age disabled adults, publishing its methodology and supporting data to ensure transparency and allow for scrutiny. (Recommendation, Paragraph 21)

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3: Develop robust methodology for measuring care's impact on people's lives, health, and the economy.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
The Government must also develop a robust methodology for measuring the impact of care on people’s lives, the wider health system, and the economy. As well as supporting the case for reform, such methodology would help councils to deliver outcome-based commissioning, which is more likely to provide people with meaningful care than the current task-based approach. (Recommendation, Paragraph 22)

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4: Previous social care reform attempts have failed, eroding the upper threshold and increasing costs.

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
There have been multiple failed attempts to advance a version of Dilnot’s reforms, during which time more and more people are faced with unknowable social care costs, and inflation has eroded the value of the upper threshold, meaning fewer people benefit from it. We note the establishment of the Casey Commission and hope it succeeds where previous reforms failed. (Conclusion, Paragraph 28)

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5: Consider measures to address the erosion of the social care upper threshold.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
Given how often this was raised as an issue, we recommend that the Casey Commission considers measures to address the erosion of the upper threshold. In the meantime, we recommend the Government does the same. (Recommendation, Paragraph 29) 53 Unpaid carers: the hidden cost of inaction

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6: Unpaid carers face significant personal and financial costs due to social care reform failures.

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
Unpaid carers are bearing the highest cost from successive governments’ failures to reform adult social care. They provide care worth £184 billion, “equivalent to a second NHS”, but this is often unrecognised and comes at great personal, emotional and financial cost as well as a cost to their own health. Carers can’t do the vital work they do to support the formal system if nobody is caring for them, and the moral and financial case for doing so is clear. We were not able to find official estimates of the cost to the Exchequer of the failure to properly support unpaid carers’ employment opportunities. However, given that one study placed it at £1 billion in 2012 the potential return on investment for supporting unpaid carers could be substantial. (Conclusion, Paragraph 47)

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7: Require the Casey Commission to establish a workstream to reduce pressures on unpaid carers.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the Casey Commission includes a specific workstream dedicated to reducing the pressures on carers, especially young carers. This workstream should consider how to support unpaid carers better, to ensure they get the respite they need and to look after their own health and wellbeing. It should also consider how businesses could be better incentivised to employ and support unpaid carers. (Recommendation, Paragraph 48) Costs to the care system

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8: Local authorities face unsustainable adult social care costs, impacting other essential public services.

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
Local authorities are buckling under the strain of the costs of providing adult social care. The current system is unsustainable. Failure to reform adult social care, especially the funding structure, comes at a significant cost to local authorities. The increasingly high proportion of spending on adult social care is crowding out spending on other services, such as fixing potholes, keeping libraries open and providing youth services, forcing many to provide only the bare minimum to residents. It is also preventing councils from reducing future demand for adult social care through investment in prevention activities. There is a growing disconnect between what is paid for and what residents expect to be delivered, risking an erosion of faith in democracy. There needs to be a more open public conversation about what is driving a reduction in council services and how adult social care contributes to that. (Conclusion, Paragraph 60)

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9: Prioritise agreement on adult social care funding structure, including a ring-fence for prevention.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that securing agreement on the funding structure must be the top priority for the Casey Commission and for any future Government reforms. Without this agreement, reform can only ever be piecemeal and short-term in outlook and, ultimately, will fail. We also recommend that any future funding structure includes a ring-fence for preventative work. (Recommendation, Paragraph 61) 54

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10: Unstable adult social care market results from inadequate funding and rising provider costs.

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
The funding structure for adult social care, rising costs and the inability to make long-term investment, is creating an unstable and unsustainable care market. Providers are making losses, creating inequities by charging more to self-funders or even planning to close entirely. The Government has not properly considered either the immediate or long-term impact of Budget measures, such as Employer National Insurance Contributions and the National Living Wage, on care providers’ staffing costs. (Conclusion, Paragraph 73)

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11: Require cross-government impact assessments for all workforce policy changes impacting the social care sector.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that any future policy changes or fiscal decisions relating to the workforce should be accompanied by a cross-government impact assessment that sets out the immediate and ongoing consequences for the social care sector. As part of this, the Government should set out what mitigating actions they would take to minimise any adverse effects on the social care sector, and how that compares to actions being taken to support the NHS. (Recommendation, Paragraph 74)

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13: Low pay for social care workers does not recognise skills and pushes some into poverty.

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
Low pay does not adequately recognise the level of skill adult social care workers need to do very difficult physical and emotional work. It is both morally unacceptable, and economically shortsighted, that the current pay regime is pushing some into poverty. Higher wages would achieve better quality care and reduce recruitment and training costs. We welcome increases to the National Living Wage. (Conclusion, Paragraph 85)

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14: Funding for adult social care fair pay and career pathway plans remains unclear.

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
We further welcome plans to establish the Adult Social Care Fair Pay Agreement and improve career pathways. However, the Government needs to set out how these measures will be funded, as providers and local government cannot afford to fund them. (Conclusion, Paragraph 86)

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15: Instruct DWP to collect occupational data to assess Exchequer costs of low care worker pay.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the Department for Work and Pensions explores collecting occupational data for benefit claimants, to better understand the cost to the Exchequer of low pay for care workers and to support the case for better pay. (Recommendation, Paragraph 87)

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16: Require full quantitative analysis for Adult Social Care Fair Pay Agreement impact assessments, including economic costs

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the impact assessment for any secondary legislation to establish an Adult Social Care Fair Pay Agreement be accompanied by a full quantitative analysis, including the impact on sector productivity, financial costs faced by providers and expected return to the Exchequer (through tax receipts or reduced welfare claims) and the wider economy. We also ask that the Department, in its response to this report, sets out when discussions on the Adult Social Care Fair Pay Agreement will begin and when the agreement will be finalised. (Recommendation, Paragraph 88) 55 The NHS and wider system costs of inaction

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17: Inadequate adult social care system imposing significant costs on the NHS, particularly from delayed discharges

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
Social care is a vital public service in and of itself and should not be valued only for how it supports the NHS. However, the current state of adult social care is imposing significant costs on the NHS. The best estimate we found was that delayed discharges alone are costing almost £1.9 billion. This does not account for other costs such as postponed procedures or admissions that could have been prevented by better social care. If DHSC is to make the best case to HM Treasury for investment in reform of adult social care, it needs to have better data on the impact the status quo is having on one of the Government’s top domestic priorities. (Conclusion, Paragraph 100)

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18: Publish annual official estimates of delayed discharge costs to the NHS, broken down by reason

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the Department provides an official estimate of how much delayed discharges are costing the NHS, broken down by the reason for the delay and including costs associated with the beds themselves, staff time and wider activity that cannot happen as a result of a delayed discharge. This should be published and updated annually. (Recommendation, Paragraph 101)

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19: Mandate Casey Commission research into NHS costs and savings linked to adult social care failures

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the Casey Commission undertakes research to better understand the costs that the NHS is bearing as a result of failures in adult social care, and where the NHS is saving money due to good social care. This should be used in future departmental budget setting processes and to make the case for moving ahead with adult social care reform. When the Casey Commission completes its work, the Government should continue this analysis as an ongoing activity. (Recommendation, Paragraph 102)

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20: Adult social care system undermining Integrated Care System development due to funding disputes

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
The current state of the adult social care system is undermining the relationship building that is fundamental to the development of Integrated Care Systems (ICSs). Too much relies on local leadership, where often it feels that progress is made despite funding mechanisms rather than because of them. By maintaining a system which fosters disputes about money, the ability of ICSs to make the difference they were set up to make will be limited at best, and impossible at worst. (Conclusion, Paragraph 106)

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22: Review NHS investment in the Better Care Fund to meet its preventative service focus

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the Government and the NHS review the structure and level of NHS investment in the Better Care Fund to ensure it is fully capable of meeting its renewed focused on upstream and preventative work. (Recommendation, Paragraph 112) 56

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23: Social care reform integral to creating a fit-for-future NHS, cannot be separate process

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
The Government will not succeed in creating an NHS fit for the future unless it effectively reforms the social care system. Social care reform is an integral part of NHS reform and cannot be a separate process. (Conclusion, Paragraph 117)

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24: Require Baroness Casey to outline adult social care's role in the 10-Year NHS Health Plan

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
In her first report, Baroness Casey should set out the immediate steps that the Government needs to take to ensure the adult social care sector can play its vital part in the three shifts for NHS reform. Achieving these should be the measure against which the success of the 10-Year Health Plan is assessed. Her report should also set out how her reforms support the delivery of the 10-Year Health Plan and what, if any, further changes might be needed to the Plan or the NHS to support the adult social care sector. (Recommendation, Paragraph 118) Costs to the economy

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25: Government must view social care as an enabler and driver of economic growth

Conclusion · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Concluded (the committee's words)
The Government needs to fundamentally change how it views the social care sector, seeing it as an enabler and talking about it in those terms in the public debate - both for the invaluable service it provides to so many people and also as a driver of economic growth. We welcome recent positive words about the potential of the sector and hope that this marks the starting of a broader shift in the narrative. (Conclusion, Paragraph 130)

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26: Develop a growth strategy for adult social care informed by productivity study, highlighting regional growth.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the Government produce a growth strategy for the adult social care sector, including a focus on its potential to drive regional growth. This should be informed by a detailed study of how to improve productivity in the adult social care sector, which we recommend the Casey Commission carries out as part of its first phase. The growth strategy should also be accompanied by a joint announcement from the Department of Health and Social Care and the Treasury, telling a positive story about adult social care: what it can do for individuals who draw on its support and their families, and also what it can contribute to the rest of society and the economy. (Recommendation, Paragraph 131)

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27: Commission research to quantify the full costs of inaction on adult social care reform.

Recommendation · 2nd Report - Adult Social Care Reform: the cost of inaction · Addressed to Department of Health and Social Care

Recommended (the committee's words)
We recommend that the Government commissions research with the aim of fully quantifying the cost of doing nothing on adult social care reform. That research should seek to quantify costs to individuals, including unpaid carers and care workers, to local authorities, to care providers, to the NHS and to the economy. Cost is not just about money, it is also about non-monetary personal costs, including individual wellbeing across these specified groups. This research should be completed ahead of the final report of the Casey Commission, to enable a full cost-benefit analysis of 57 any recommendations she puts forward and to ensure that the Government can start building the public and political support it will need to guarantee the longevity of reform. The moral case for reform has never been stronger, but this must be accompanied by a robust financial case. Without this we fear that the reforms that come out of the Casey Commission will be doomed to failure, leaving everyone continuing to suffer under the current unsustainable system. (Recommendation, Paragraph 137) 58

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Reports

1 report

Oral evidence sessions

4 sessions

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Date Session and witnesses Source
19 Mar 2025
Oral Evidence
Caroline Abrahams · Age UK, Dr Maria Petrillo · Centre for Care, University of Sheffield, Holly, Jayne Simpson, Keyaan, Tom Gentry · Age UK
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5 Mar 2025
Oral Evidence
Anu Singh · NHS Black Country Integrated Care Board, Cllr David Fothergill · Local Government Association, Dr Birju Bartoli · Northumbria Healthcare NHS Foundation Trust, Hugh Evans · Bristol City Council, Isabel Lawicka · NHS Providers, Melanie Williams · Association of Directors of Adult Social Services
View ↗
5 Feb 2025
Oral Evidence
Anita Charlesworth · Health Foundation, Ms Emily Holzhausen CBE · Carers UK, Oonagh Smyth · Skills for Care
View ↗
8 Jan 2025
Oral Evidence
Kathryn Smith · Social Care Institute for Excellence (SCIE), Simon Bottery · King's Fund, Sir Andrew Dilnot CBE · Commission on Funding of Care and Support
View ↗

Written evidence

121 submissions recorded

Submission metadata is shown here; use the source links to read the evidence on Parliament’s website.

Showing the latest 50 of 121 recorded submissions. Written evidence in the activity timeline uses this same preview. Browse the inquiry on Parliament.

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ReferenceDateSubmitter
ASC0147 23 Apr 2025 HM Treasury
ASC0148 23 Apr 2025 Hugh Evans, Bristol City Council
ASC0142 5 Feb 2025 ESRC Centre for Population Change, Connecting Generations Research partnership
ASC0141 5 Feb 2025 Association of Directors of Adult Social Services (ADASS)
ASC0003 29 Jan 2025 Mrs Lynne Bowers
ASC0006 29 Jan 2025 Mr Keith Keeping, (retired)
ASC0012 29 Jan 2025 Labour Social Work Group
ASC0013 29 Jan 2025 The Filo Project CIC
ASC0015 29 Jan 2025 Ealing Reclaim Social Care Action Group
ASC0138 29 Jan 2025 Association of Mental Health Providers
ASC0136 29 Jan 2025 The Trades Union Congress (The TUC)
ASC0135 29 Jan 2025 Chartered Institute for Housing
ASC0134 29 Jan 2025 Just Group Plc
ASC0133 29 Jan 2025 NHS Frimley ICB
ASC0127 29 Jan 2025 Southern Healthcare (Wessex) Ltd
ASC0126 29 Jan 2025 Newton
ASC0125 29 Jan 2025 Leonard Cheshire
ASC0123 29 Jan 2025 Reclaim Social Care Greater Manchester
ASC0122 29 Jan 2025 Carers Trust
ASC0121 29 Jan 2025 Social Interest Group
ASC0116 29 Jan 2025 HC-one
ASC0111 29 Jan 2025 More than a Provider Collaborative
ASC0105 29 Jan 2025 Institute and Faculty of Actuaries
ASC0096 29 Jan 2025 East Sussex County Council
ASC0095 29 Jan 2025 Caremark Ltd
ASC0092 29 Jan 2025 Care Software Providers Association
ASC0091 29 Jan 2025 Switchfoot Wealth Limited
ASC0084 29 Jan 2025 The Society of Later Life Advisers SOLLA
ASC0083 29 Jan 2025 Association of British Insurers
ASC0081 29 Jan 2025 Care Rights UK
ASC0080 29 Jan 2025 Deepa Korea, RCN Foundation
ASC0079 29 Jan 2025 Think Ahead
ASC0077 29 Jan 2025 The Challenging Behaviour Foundation
ASC0076 29 Jan 2025 PSPA
ASC0073 29 Jan 2025 My Life My Choice
ASC0072 29 Jan 2025 Voluntary Organisations Disability Group (VODG)
ASC0065 29 Jan 2025 The Health Creation Alliance C.I.C.
ASC0063 29 Jan 2025 Bluebird Care
ASC0061 29 Jan 2025 Brainkind
ASC0058 29 Jan 2025 Dr Rosie Read, Bournemouth University
ASC0056 29 Jan 2025 Dedalus
ASC0054 29 Jan 2025 Voyage Care Ltd
ASC0053 29 Jan 2025 The Aldingbourne Trust
ASC0048 29 Jan 2025 Hft
ASC0045 29 Jan 2025 Women's Budget Group
ASC0042 29 Jan 2025 Bupa Global, India & UK
ASC0038 29 Jan 2025 United for All Ages
ASC0037 29 Jan 2025 Partners in Care
ASC0036 29 Jan 2025 Hallmark Foundation
ASC0033 29 Jan 2025 Effective Practice

Who gave evidence

18 witnesses

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WitnessOrganisationSessions
Anita Charlesworth · Senior Economic Adviser Health Foundation 1
Anu Singh · Chair NHS Black Country Integrated Care Board 1
Caroline Abrahams · Charity Director Age UK 1
Cllr David Fothergill · Chair of the Community Wellbeing Board Local Government Association 1
Dr Birju Bartoli · Chief Executive Northumbria Healthcare NHS Foundation Trust 1
Dr Maria Petrillo · Research Associate Centre for Care, University of Sheffield 1
Holly Not recorded 1
Hugh Evans · Executive Director for Adults and Communities Bristol City Council 1
Isabel Lawicka · Director of Policy and Strategy NHS Providers 1
Jayne Simpson Not recorded 1
Kathryn Smith · Chief Executive Social Care Institute for Excellence (SCIE) 1
Keyaan Not recorded 1
Melanie Williams · President Association of Directors of Adult Social Services 1
Ms Emily Holzhausen CBE · Director of Policy and Public Affairs Carers UK 1
Oonagh Smyth · Chief Executive Officer Skills for Care 1
Simon Bottery · Senior Fellow (Social Care) King's Fund 1
Sir Andrew Dilnot CBE · Chair Commission on Funding of Care and Support 1
Tom Gentry · Head of Health Influencing Age UK 1