Adult social care overspend reaches £715m as directors warn demand is outpacing funding

Local authorities overspent their adult social care budgets by £715 million last year as they faced rising demand, increasing complexity of need and mounting pressures across safeguarding, mental health and support for unpaid carers, according to the latest annual survey from the Association of Directors of Adult Social Services (ADASS).

Published today, the ADASS Spring Survey found councils are supporting more adults with increasingly complex needs while also dealing with a growing number of people whose care would previously have been funded through NHS Continuing Healthcare (CHC). The report also highlights a significant rise in safeguarding concerns, increasing numbers of young adults with mental health needs requiring support and more than 400,000 people waiting for assessments, care, reviews or direct payments.

The survey found that 86% of directors reported an increase in mental health needs in their local areas between 2025 and 2026, while 77% said they had seen an increase or significant increase in younger people aged 18 to 24 presenting with mental health needs. More than half of directors also reported having only partial or no confidence that they could meet their legal safeguarding duties.

Phil Holmes, President of ADASS, said: “ADASS’ latest survey highlights the disconnect between government ambitions for adult social care and the funding provided to deliver them. Councils continue to be placed under huge financial pressure, with no signs of this abating. Behind every number there is person needing support, a family struggling or an unpaid carer taking on huge responsibility."

He warned that pressures around NHS Continuing Healthcare were leaving people without the support they needed.

“There are areas that need particularly urgent attention. The ongoing reduction in the number of people receiving NHS Continuing Healthcare flies in the face of our ageing population. Increasingly frequent funding disputes are leaving people and families facing uncertainty about whether they will get the care they need, or whether their existing care will continue to be possible. This year’s ADASS survey provides even more evidence that NHS Continuing Healthcare urgently needs national reform."

Holmes also urged the incoming Prime Minister to use the current momentum around adult social care reform.

“This must be just the start. A new Prime Minister is about to take the helm and Baroness Casey is saying that adult social care needs fundamental reform and sustainable investment with no more ‘sticking plasters’. We must make sure that our government uses this momentum so that next year’s ADASS national survey signals positive change rather than more of the same”.

The report says three-quarters of directors have seen an increase in people approaching councils whose care would previously have been funded by NHS Continuing Healthcare, while councils also reported that Integrated Care Boards were failing to invest sufficiently in community services, including CHC, section 117 mental health aftercare and joint funding packages.

The survey also highlights growing pressures during the transition from children's to adult services, with increasing numbers of young adults presenting with complex mental health needs, profound learning disabilities and physical disabilities requiring high-cost care packages.

Support for unpaid carers continues to be another area of concern. Although 73% of directors reported an increase in the number of unpaid carers needing support, only 35% of councils plan to increase investment in carers during 2026/27, down from 39% the previous year. The number of people waiting for carers' assessments has also increased significantly.

Responding to the findings, Gerard Crofton-Martin, Interim Chief Executive at the Social Care Institute for Excellence (SCIE), said: “This survey paints a deeply concerning picture of a system under unabating pressure.

“The financial challenges facing individuals and local authorities, alongside increases in waiting times and pressure on support for unpaid carers, should be a concern for all of us. Behind these figures are people who need timely, high-quality support to live safe, independent, and fulfilling lives."

He said safeguarding pressures were particularly worrying.

“Perhaps most concerning is that over half of Directors have only partial or no confidence in meeting their legal duties for safeguarding. The need for a coherent and compassionate approach to protecting people from harm has never been more urgent."

Crofton-Martin added that the findings reinforced the need for long-term reform.

“The findings underline the importance of sustainable investment, stronger partnership working across health and social care, and a renewed focus on prevention and early intervention. At SCIE, we know that the best outcomes are achieved when services work together with people, families, and communities. As demand continues to grow and needs become more complex, it is vital that reform is grounded in what matters most to people.

“The Casey Commission presents a crucial opportunity to act on the challenges highlighted in the survey. It must address the underlying causes of growing demand and inequity, while creating a future that is more sustainable, more person-centred, and more resilient.”