Care England has responded to Skills for Care’s State of the Adult Social Care Sector and Workforce in England 2025 report.
The report shows that, while the workforce continues to grow, with filled posts up 3.4 percent and vacancies falling to pre-pandemic levels, this progress is fragile, as they are still three times the vacancy rate of the whole UK job market. The sector’s economic contribution increased by 12.2 percent to GBP 77.8 billion, demonstrating that investment in the social care workforce not only supports people to live well but also delivers substantial economic benefits for wider society.
However, the report reveals growing instability in the labour market. The number of international recruits halved in the past year, a drop of 55,000, while the number of British nationals working in care fell by 30,000. With fewer people entering the country, more domestic workers leaving the sector, and the displaced worker pool becoming quickly exhausted, the pipeline of new entrants is drying up.
As current visas begin to expire and questions remain about renewal routes, providers are bracing for a tightening labour market.
“This report tells the story of a sector that is holding the line, but only just. The international recruits who helped plug the gaps are no longer arriving in the same numbers, and we’re losing too many home-grown staff. With fewer people coming in, more leaving, and the domestic workforce shrinking, pressure is mounting,” said Professor Martin Green OBE, Chief Executive of Care England.
“The storm clouds are already gathering, and unless action is taken now, providers will once again be forced to rely on costly agency cover; and the impending wave of pressure will bring with it greater instability and, ultimately, less consistency for the people we support.”
Skills for Care also reported that the median hourly rate for care workers was GBP 11.00, around 56p above the National Living Wage (NLW) at the time. If that 56p differential remains consistent, the median wage would be expected to rise roughly 3.9 percent over the year, equating to over GBP one billion additional pressures on the sector, based on government and Low Pay Commission projections, costs that current funding settlements do not cover.
“These figures show how even small pay rises can tip a sector already on a knife-edge. Providers want to pay their staff fairly, they know how hard they work and how much they give, but they can’t do it without proper support. Every increase brings huge financial strain for services already stretched to their limits. Unless the government sets out a clear plan to meet these rising costs, providers will be pushed into making impossible choices, and the fragile stability we’ve worked so hard to rebuild will start to fall away.”
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