Recommendation 26

HM Government Rejected

The government strongly agrees that adult social care plays an important enabling role in supporting economic growth, particularly through its impact on employment and regional development. The sector contributes around 2% of GDP, employs 1.59 million people, and is a major employer in many of the most economically disadvantaged regions. We are strengthening this contribution. Our Employment Rights Bill, which has now passed the House of Lords, legislates for the first ever Fair Pay Agreement in adult social care. This will improve pay and conditions for a workforce where around 70% of care workers are paid within £1 of the National Living Wage. We are also investing in productivity-enhancing digital tools like Digital Social Care Records, which save time for care workers, and in preventative technologies that help prevent avoidable hospital admissions and support NHS productivity. Adult social care also generates many wider indirect economic benefits. By helping people live independently, adult social care enables individuals to stay in or return to work and reduces long-term sickness. Unpaid carers also benefit directly and indirectly from adult social care support funded by local authorities. On average, 7 hours of formal care reduces the amount of unpaid care provided by 2 hours. Around 51% of unpaid carers (2.4 million people) in England are in employment. In the absence of formal care, the amount of unpaid care might increase for some people, impacting their health, wellbeing and employment outcomes. Supporting people through adult social care has benefits that multiply outwards. When individuals receive the right care in the right place at the right time, they are better able to contribute to society through employment, volunteering or other forms of participation. This is particularly important in dealing with economic inactivity and social isolation, which have been driven in part by rising levels of long-term ill health. The government’s number one mission is economic growth. However, the government does not believe a dedicated adult social care ‘growth strategy’ is the right approach. The core purpose of adult social care is to maximise people’s wellbeing and personal independence. While growth impacts are considered in the round as part of the policy making process, including as part of the business case appraisal process, we do not think a separate growth strategy for the sector is proportionate or necessary. In relation to the independent commission carrying out a study on productivity, the commission is independent, and Baroness Casey has been given a sufficiently broad remit in the published terms of reference to consider independently how to build a social care system fit for the future.