Social Services: Employers' Contributions

The Government took the cost pressures facing adult social care, including changes to employer National Insurance contributions and increases to the National Living Wage, into account as part of the wider consideration of local government spending.

To enable local authorities to deliver key services such as adult social care, the Government has made available up to £3.7 billion of additional funding for social care authorities in 2025/26. The Government also made an extra £502 million of support for local authorities in England to manage the impact of changes to employer National Insurance Contributions announced at the Autumn Budget for 2025/26.

In addition, the final Local Government Finance Settlement has confirmed an increase of over £4.6 billion of funding available for adult social care in 2028/29 compared to 2025/26. Under the Care Act 2014, local authorities are responsible for shaping their care markets to meet local needs. In doing so, they should have an understanding of the local market, work effectively with local providers, and maintain oversight of local workforce pressures. It is for them to determine what is a sustainable rate, suitable to their local circumstances.