Key facts
- Sixteen English councils spent more than 80% of their core funding on adult and children’s social care in 2025-26.
- The total net spending on social care by these councils was £42.8bn.
- Social care costs represented a record 71.9% of combined core spending for these councils.
- In 2017-18, care costs made up 62.4% of councils’ core spending.
- Halton council in Cheshire had the highest net spending on social care relative to its spending power at 92.9% in 2025-26.
- Nineteen councils spent more than half of their core spending power on adult care alone.
Sixteen English councils are spending more than 80% of their core funding on adult and children’s social care, a situation driven by an aging population with complex needs, rising inflation, and increased demand for children's services. This financial pressure is impacting other local services and pushing many councils to the brink of bankruptcy. In 2025-26, these councils spent a combined £42.8bn on social care, representing a record 71.9% of their total core spending, up from 62.4% in 2017-18. Adult social care accounted for 44.5% of this spending, while children's services made up 27.4%.
Halton council in Cheshire reported the highest spending relative to its spending power at 92.9%, with over half of its core budget allocated to adult social care and 42% to child social care. Despite making cuts and selling assets, an official audit found Halton's finances unsustainable, leading to £35m in exceptional financial support from the government. A council spokesperson stated that demand continues to strain finances and that changes are being made to improve long-term sustainability.
Many of the 16 councils facing the largest social care expenditure are in deprived areas like Blackpool, Middlesbrough, and Hartlepool. Nineteen councils now spend more than half of their core spending power on adult care alone, a threefold increase since 2017-18 when only six authorities reached this threshold. Councils overspent their adult social care budgets by £715m in 2025-26 and plan to save £909m through measures like higher care charges and cuts to services such as day centers.
The King's Fund noted that the rise in spending reflects both an increase in the number of people receiving support and higher fees paid to care providers. As of March, 684,920 adults were in long-term care, up from 613,360 in 2021-22. Simon Bottery, a senior fellow at the King's Fund, highlighted that this increased spending on social care, which serves about 2% of the population, squeezes other services like refuse collection, libraries, and roads. He suggested a national funding system is needed to address the current variation in support across local authorities.
Dr. Wendy Taylor, chair of the Local Government Association’s health and wellbeing committee, acknowledged a slight decrease in overall overspend but emphasized that it remains high and affects other services. She stressed the need for sustained and predictable funding and infrastructure to enable councils to meet their duties and support independent living.