BASW England Statement on the Local Government Finance Settlement 2025–26

The British Association of Social Workers (BASW) England acknowledges the Government’s recognition of the urgent need for investment in local authority services through the Local Government Finance Settlement. However, we remain deeply concerned about whether the measures outlined will adequately address the entrenched challenges facing adult and children’s social care.

Impact on Adult Social Care

The proposed increase in the Social Care Grant and the introduction of the Market Sustainability and Improvement Fund are positive developments aimed at stabilising the adult social care sector. Nevertheless, these measures come after years of chronic underfunding and the enduring impact of austerity. While the £680m increase in the Social Care Grant is welcome, it falls far short of the transformational funding required to tackle acute staffing shortages, systemic pressures, and the rising complexity of demand.

BASW England calls on the Government to use the forthcoming multi-year settlement as an opportunity to establish sustainable, long-term funding solutions for adult social care. Proposals for a National Care Service raise questions about the future direction of care provision, but significant detail is lacking. It is vital that any new structure prioritises co-production with those receiving care and the professionals delivering it, including social workers.

The funding allocated for the Better Care Fund and Disabled Facilities Grant will remain critical for supporting integration and independent living. However, the sector continues to suffer from fragmented resources, burdensome bureaucracy, and inequities in access to care. Social workers, who are at the forefront of these challenges, require sufficient funding and support to ensure care is delivered fairly and effectively.

Impact on Children’s Social Care

The introduction of the £250m Children’s Social Care Prevention Grant is a welcome acknowledgment of the importance of early intervention. Investment in prevention has the potential to reduce dependence on costly crisis services and improve outcomes for families. However, while this funding doubles the Government’s commitment to preventative services, it falls short of the £2.6 billion outlined as necessary funding needed by the Independent Review of Children’s Social Care.

The uplift to the National Minimum Allowance for foster carers and the consolidation of children’s services grants are also positive steps. However, they do not address the persistent systemic inequalities and workforce challenges in children’s social care. Excessive caseloads, high vacancy rates, and insufficient funding for early help services continue to undermine social workers’ capacity to safeguard children and support families effectively.

The Legacy of Austerity

This settlement seeks to address some of the gaps created by years of austerity but does not fully reverse its impact. Social workers witness daily the devastating consequences of prolonged funding cuts on families and communities, with rising poverty, unmet care needs, and overstretched services now commonplace. Funding reform must include a transparent and equitable distribution of resources, with particular attention paid to areas of greatest deprivation.

Margaret Young, Chair of the BASW England Adult Group, commented:

“We welcome additional funding for adult services in the local government settlement; however, it really does not go far enough to fund the services required to meet the demands currently experienced in adult social care – or to fully address the fragility of the provider market, which is suffering from the impact of inflation and increased National Insurance costs.”

BASW England remains ready to work with the Government, local authorities, and other stakeholders to ensure social work is adequately supported and resourced to deliver high-quality care for the most vulnerable in society. Without bold action, the consequences of inaction will be borne by those who rely on these vital services, deepening inequalities and worsening outcomes for all.