Chancellor’s Spring Budget 2024: Key takeaways and disappointment over lack of adult social care funding
The UK Government this week released its Spring Budget statement detailing its plans for the upcoming year with a host of measures outlined, including some which promise to impact nursing and the NHS generally. The fiscal plans offered no new funding for social care or for disabled people, leaving many in the sector feeling disappointed.
Jeremy Hunt, Chancellor of the Exchequer, announced the UK Government’s plans for tax and spending policy in the UK for 2024-2025. Chief among the announcements was a 2p reduction on national insurance, on top of a 2p reduction he made in the autumn.
The NHS is getting £3.4 billion funding as part of the government’s £4.2 billion Public Sector Productivity Programme, which is designed to get productivity back to “pre-pandemic levels”. This investment, the chancellor said, would go towards new technology and digital transformation and it has been earmarked for the introduction of nationwide electronic patient records, electronic rostering via an NHS staff app and artificial intelligence (AI) to aid clinical staff.
In addition, the Spring Budget is supporting small businesses by increasing the VAT registration threshold from £85,000 to £90,000.
No new funding, however, was announced for social care or for disabled people, which left many in the sector feeling disappointed.
Professor Martin Green OBE, Chief Executive Officer of Care England, says: “This year’s Spring Budget made it clear that the government has no intention to make good on its five-year-old promise to ‘fix social care’. While financial support was given to the child social care system which was recognised as broken, no such lifeline was given to adult social care.”
Responding to the Budget statement, Steve Veevers, CEO of learning disability charity Hft, said: “As highlighted by our Sector Pulse Check report, written in partnership with Care England, adult social care is in crisis, with 40 per cent of providers reporting a deficit in 2023. While it is true that the Government increased funding for Local Authorities by 7.5 per cent earlier this year, it falls short of the costs adult social care providers will incur this coming financial year, such as the 9.8 per cent increase in the national minimum wage.”
Steve Gates, Managing Director at telecare company Taking Care, said that elderly care was “completely overlooked” in the Spring Budget. He commented: “It would be encouraging to see the government acknowledge technological advancements like wearable technology, smart home technology and telemedicine, as this could add to productivity and efficiency within the NHS. It would also help the elderly enjoy a more independent and improved quality of life, taking some of the pressure off the NHS, unpaid carers and costs for care, with councils facing increased pressure to enhance government-backed care provision.”
Amy Little, Head of Advocacy at disability charity Leonard Cheshire, remarked on the lack of any new funding for adult social care. She said: “The Chancellor’s speech did not mention disabled people at all. And it did not mention adult social care. The Budget Red Book simply reannounced the £500 million from January, which doesn’t even come close to plugging the gaps.
“There’s nothing new when adult social care requires £2 billion just to meet the vital National Living Wage rise, which begins in April. And nothing new when there is still a workforce crisis – with more than 150,000 vacancies across the UK.”
Dr Rhidian Hughes, Chief Executive of the Voluntary Organisations Disability Group (VODG) says: “‘Charities now face the stark reality of needing fees to rise by at least 12 per cent in 2024/25 to cover costs including the government’s commitment to increase National Living Wage, but council uplifts for next year are falling far short of this.” The impact, it says, will be the loss of support for some of the most vulnerable people in our society, who continue to be failed by the Government’s refusal to provide the funding and certainty councils, charities and disabled people.
Anna Hemmings, joint CEO of the Association of Directors of Adult Social Services, said: “Millions of adults and carers will be disappointed today’s Budget has done nothing to help them. This squeeze on social care means directors can’t invest enough in early support for people close to home which prevents them needing hospital or residential care, at a greater cost.”
Richard Kramer, Chief Executive of the national disability charity Sense, said: “Many disabled people are teetering on a financial cliff edge, and today’s budget has done little to help them back from the brink. While the extension of the Household Support Fund is a relief compared to the alternative, by only extending it for six months families will be left high and dry next winter.”
Matthew Taylor, the chief executive of the NHS Confederation, added: “This latest budget has features that many health leaders will welcome, but with a revenue settlement which is at best flat in real terms against a backdrop of significant deficits and universal pressures across the NHS it means that 24/25 is going to be another incredibly tough year for the health service and for patients.”
The former health and social care secretary said a previously-announced one per cent real-terms increase in public spending per year would be protected, but that it would not increase despite calls from some.
