Yesterday's Budget (28 October) contained no new adult social care grant spending during this Parliament. There was also no additional announcements on funding for fair pay beyond existing commitments, and no energy support specifically for care providers.

Budget Reactions from the sector have been critical to the Chancellors 'breathing space’ proposals not considering social care in enough detail.

ADASS said the Budget "missed an opportunity to do more to support adult social care" Local Government Lawyer.

Macmillan called it "exceptionally light on health and social care commitments" Macmillan.

Councils will retain the existing local government settlement, worth around £4.6 billion in additional funding by 2028/29. By contrast, the NHS will receive a further £190 million for winter pressures, with no equivalent allocation for social care. 

Headline budget measures

National Care Service

• The Government has recommitted to introducing personal care free at the point of use for older people.
• Funding is expected to come partly from changes to the State Pension Triple Lock from 2030.
• The Casey Commission is due to report in 2027, with implementation planned for the next Parliament.

National Living Wage

• The National Living Wage will increase by 3.9% to £13.21 per hour from 1 April 2027.
• Rates for 18 to 20-year-olds will rise to £11.27 per hour, while rates for 16 to 17-year-olds and apprentices will increase to £8.31 per hour.
• The accommodation offset will increase to £11.53 per day.
• No additional funding has been announced to help care providers meet these increased staffing costs, and employer National Insurance arrangements remain unchanged.

Unpaid carers

• The current "cliff edge" in Carer's Allowance will be removed. Rather than losing the entire benefit once earnings exceed the weekly threshold, payments will taper away gradually above the limit.
• The reform will not be introduced until 2030/31, when a new IT system is expected to be operational.
• The Government estimates that around 48,000 carers in England and Wales will benefit.
• The measure is costed at £40 million in 2030/31 and £80 million in 2031/32.
• While welcome, the scale of the reform appears modest given estimates that there are between 3 and 5 million unpaid carersacross the UK.
• The current earnings limit for Carer's Allowance is £204 per week.

Mileage allowances

• The 55p tax free mileage rate has been made permanent.
• The rate payable on business mileage above 10,000 miles will increase to 35p per mile.
• Homecare workers have been identified as beneficiaries; however, many providers may still find that commissioned fee rates do not adequately cover travel costs.

Prevention

• A new ringfenced prevention budget will be established as part of the 2027 Spending Review.

Energy support

• Households will receive a £100 energy payment from January 2027.
• No equivalent support has been announced for care providers facing ongoing energy cost pressures.

For adult social care, the Budget largely maintains existing funding commitments rather than introducing significant new investment. While there are some positive measures for unpaid carers, mileage allowances and prevention, the absence of new sector funding, workforce support, or targeted help with rising operating costs is likely to reinforce concerns that social care remains a lower priority than the NHS within wider public spending plans.