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Adult Social Care Newsletter | The £8bn Funding Black Hole Facing Councils
PLUS: How Wigan Council's AI partnership has cut social care admin by 50%⚖️
Rafe Houston
February 20, 2025 • Estimated Reading Time: 10 minutes
Welcome to Adult Social Care, your weekly newsletter offering the latest insights, strategies, and innovations empowering leaders to navigate challenges and drive excellence in the UK’s adult care sector. We're committed to keeping you informed and inspired with fresh ideas to tackle the year ahead.
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PARTNERSHIP NEWS
Struggling with time and resources in Adult Social Care? You’re not alone.
Wigan Council, in partnership with Agilisys Transform, is proving that AI can help teams do more with less. By co-developing AI-powered tools like automated needs assessments, meeting minutes, and case auditing, we’ve helped Wigan cut assessment drafting time by 50%, save 107 days of work, and free up social workers to focus on residents instead of paperwork. The result? Happier, healthier staff, reduced sickness and overtime, and more efficient service delivery.
Could AI help your team unlock these benefits? Press the image below to read the full case study to see how Wigan and Agilisys Transform are making it happen.
UPCOMING EVENTS
Join Agilisys Transform for an exclusive webinar, EHCP Plus: Winter Cohort Insights, and gain first-hand knowledge on how councils are leveraging AI to enhance SEND services.
The session will explore:
Key lessons learned from the Winter Cohort
First-hand experiences from councils using EHCP Plus
The transformative role of AI in improving SEND outcomes
📅 Date: Wednesday, 12 March 2025
⏰ Time: 10:00 AM - 11:00 AM GMT
Click here to sign up☝️
LOCAL GOVERNMENT
Recent analysis by the Local Government Association (LGA) indicates that councils in England may encounter a funding shortfall exceeding £8 billion by 2028/29 if current cost and demand trends persist. This projection underscores the urgent need for comprehensive financial strategies to ensure the sustainability of essential local services.
Key Findings:
Escalating Service Costs: The LGA's submission to the Treasury ahead of the Spending Review reveals that, without intervention, cost and demand pressures could add £21.4 billion to council service delivery expenses by 2028/29, representing a 29.8% increase since 2024/25.
Progressive Funding Gaps: Projected deficits are expected to grow annually, starting from £1.9 billion in 2025/26, escalating to £4.0 billion in 2026/27, £6.0 billion in 2027/28, and reaching £8.4 billion by 2028/29.
The LGA urges government action in the upcoming Spending Review, calling for sustainable funding to prevent service cuts and ensure councils can support communities effectively.
PUBLIC POLICY
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Wolverhampton Council is proposing a 6.6% increase in funding for adult care providers, exceeding inflation. The increase would apply to home care, nursing, residential care for under-65s, supported living, and day care services, with an agency rate rise of 6.6% as well. If approved, the new rates take effect on 7 April.
Councillor Jasbir Jaspal emphasized the vital role of care providers and acknowledged their financial pressures. She stated that despite budget challenges, the council remains committed to supporting the sector, continuing its trend of annual funding increases.
LOCAL GOVERNMENT STRATEGY
Scottish public service reform remains stalled despite urgent calls for change. The Christie Report's early intervention approach is neglected, while fragmented agencies and resistance from ministers, councils, and the public hinder progress. Integration challenges persist, especially in health and local governance, necessitating immediate, cohesive action and leadership.
COUNCIL FUNDING
North Yorkshire County Council's new budget imposes a 4.99% council tax increase due to a £22 million funding shortfall. The rise, deemed necessary by council leaders, covers essential services amid government funding cuts. A judicial review against these cuts is contemplated, stressing fair funding for rural councils. |  |
ASSISTIVE TECHNOLOGY
St Helens Council is piloting the use of smart technology to enhance social care services. The initiative involves deploying sensors and devices in the homes of vulnerable residents to monitor daily activities and identify potential health or safety issues. Data collected is analyzed to detect deviations from normal patterns, enabling early interventions. This approach aims to promote independent living, reduce hospital admissions, and improve overall well-being. The trial reflects a growing trend of integrating technology into social care to provide proactive and personalized support. |  |
CARE SECTOR FUNDING
A coalition of over 60 cross-party MPs and care industry leaders is advocating for an alternative funding strategy to mitigate the impact of impending National Insurance (NI) increases on the UK's care sector. The proposal, developed by not-for-profit energy consultancy Box Power CIC, suggests that major banks allocate 1% of their Bank of England deposits into interest-free accounts. This initiative could save the government approximately £1.3 billion annually in interest payments, funds which would be earmarked to offset the financial burden of the NI hikes on care providers. Prominent supporters include Robert Kilgour, founder of Renaissance Care, and Mike Padgham, chair of Saint Cecilia’s Care Group. Former Conservative leader Sir Iain Duncan Smith emphasized the detrimental impact of the NI increases on the already struggling sector and urged the government to implement this initiative.
Hi, I'm Eshe, an Adult Social Care Advisor at Agilisys Transform with 8 years as a Social Worker and Manager. I've worked across Mental and Physical Disability Teams, empowering vulnerable adults to achieve their goals. At Agilisys, I’m combining my passion for social care with innovative AI solutions to enhance efficiency and create more time for meaningful, impactful support. I’m excited to shape a more connected and compassionate future for social care!
Joining Agilisys has truly been a breath of fresh air. For the first time in a long while, I feel excited and inspired by the work I do. Being surrounded by a team of creative, driven individuals who are genuinely passionate about making a difference has reignited the spark I had when I first entered social work. When I reflect on my previous role, I realise how much the endless paperwork and administrative pressures drained my enthusiasm. I was constantly behind, overwhelmed, and disconnected from the very reasons I chose this profession.
The more I have worked with our QuickAction platform and the Agilisys Needs Assessment tool that is a part of it, the more I have come to appreciate how transformative it truly is. There is something incredibly empowering about knowing that this tool was designed with social care workers in mind, built not just for us, but with us.
From start to finish, using the tool was an easy, efficient experience. I would go to the App, press record and be present in the assessment, without having to worry about taking endless notes.
This tool does not just reduce admin, it restores the heart of social work. It allows us to focus on the human side of our job, while also making the process of documentation smoother and more manageable. It would give me the freedom to feel less stressed, more in control, and most importantly, more present in my role. This is not just a tool, it is a revolution in the way we approach social care. I know it is going to continue to transform the way we work for years to come.
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