English councils are directing a growing share of flexible local funding towards adult and children’s social care, leaving less room for other services and intensifying pressure on budgets. The figures also show how rising demand, provider costs and local funding arrangements are shaping council spending decisions.
Care is taking a larger share of local budgets
Councils responsible for social care spent a net £42.8bn on adult and children’s services in 2025-26, according to analysis of government figures. That represented 71.9% of their combined core spending, a record proportion. Adult social care accounted for 44.5%, while children’s services represented 27.4%. In 2017-18, care costs made up 62.4% of core spending. Sixteen councils spent more than 80% of their core funding on care, while adult social care alone consumed more than half of core spending power at 19 councils. The latter figure has more than tripled from six authorities in 2017-18.
Halton illustrates the pressure on council finances
Halton in Cheshire recorded the highest net spending on social care relative to its spending power, at 92.9% in 2025-26. Just over half of its core spending went on adult social care and 42% on children’s social care, including fostering services. An official audit published last month found the council’s finances were unsustainable, despite cuts and the sale of council assets. Halton received £35m in government-approved exceptional financial support this year. A council spokesperson said continuing demand was putting pressure on finances and that new ways of working were intended to reduce costs while maintaining outcomes for vulnerable residents.
The funding measure is flexible, but the demand is not
Core spending power is the government’s measure of the money councils can use to provide services. It combines locally raised income, including council tax and business rates, with central government grants, and is not ringfenced. Councils can therefore decide how to allocate it, but rising care commitments can leave less available for refuse collection, libraries, roads and planned prevention. Councils overspent their 2025-26 adult social care budgets by £715m and drew up plans to save £909m, according to the Association of Directors of Adult Social Services. Those plans include higher care charges and cuts to services such as daycentres.
More people are being supported as reform is considered
The King’s Fund said the recent spending rise reflected an increase in the number of people being supported, contrasting with 2015-20, when higher costs were mainly associated with fees paid to social care providers during council budget cuts. As of March this year, 684,920 adults were in long-term care, up from 613,360 in 2021-22. Simon Bottery said an ageing population and more adults living longer with complex needs were increasing demand. The government has begun preparing the ground for a National Care Service after the next election, while an independent review by Louise Casey is now expected next year rather than 2028.
| Fact | Value |
|---|---|
| Net adult and children’s care spending | £42.8bn in 2025-26 |
| Combined core spending allocated to care | 71.9% in 2025-26 |
| Councils spending more than 80% on care | 16 |
| Highest proportion recorded by one council | Halton: 92.9% |
| Adult social care budget overspend | £715m in 2025-26 |
| Planned adult social care savings | £909m |
| Adults in long-term care | 684,920 as of March this year |
A higher proportion of council budgets is being spent on adult social care than a few years ago, which means services such as refuse collection, libraries and roads get squeezed.
WHY IT MATTERS
For suppliers and councils, the figures show why social care purchasing decisions are being made within a larger contest for flexible local funding. Demand and provider costs are affecting care budgets, while savings plans and pressure on other services may influence the volume, design and affordability of future services. The figures also underline the difference between locally managed funding and proposals for a national funding system.
Reported from theguardian.com, 2026-09-30. The Tender Wire is published by Otnox.
