Care homes warn Chancellor of ‘catastrophic collapse’ over living wage

Nursing care hit hardest by local authority spending decisions

Nursing care saw the biggest decrease in authority funding during 2020-21 both in monetary and percentage terms, latest statistics show.

Adult Social Care Activity and Finance Report, England – 2020-21 – NHS Digital reveals that despite a 1.5 per cent increase in authority funding for long term care (£233 million), supported community living benefited from the biggest increase in expenditure – an increase of 10.1 per cent (£210 million) since the previous year.  

The report notes a gross current expenditure on adult social care of £21.2 billion, which represents an increase of £1.6 billion from the previous year, a 8.1% increase in cash terms and a 1.3% increase in real terms. Nearly 75 per cent of total gross current expenditure is spent on long term care (£15.6 billion), which consists of residential, nursing and community care.

However, funding figures for 2020-21 have been influenced by COVID support funding.  

The year also saw the first year-on-year increase in the number of people supported, up 2,715 to a total of 841,245 clients. This may be influenced by the inclusion of activity funded under COVID-19 hospital discharge arrangements. Previously, the number of people receiving long term care has been decreasing each year since 2015-16. This downward trend has been mainly driven by a decrease in clients aged 65 and over receiving long term care, down 35,945 to 551,550 since 2015-16.

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