iCG writes to Rachel Reeves, Chancellor of the Exchequer

Honorary President and former Chair of the Independent Care Group (iCG), Mike Padgham, has written to the Chancellor urging the government to support social care in the forthcoming budget.

The letter reads:

Dear Chancellor 

Re: The Urgent Need for Support for the Social Care Sector in the Forthcoming Budget 

I am writing to you as Honorary President and former Chair of the Independent Care Group, and as someone who has spent many years advocating for a fair, sustainable and respected social care sector. I do so with respect for the significant economic pressures facing the Government, but also with deep concern for the situation now confronting social care providers across the country. 

The pressures facing the sector are unprecedented. Rising costs, workforce shortages, and long-term underfunding have created conditions that many providers can no longer withstand. Without targeted support in this Budget, we will see more care homes and homecare providers closing their doors

. 

This is not only a social crisis, it is an economic one.

Skills for Care’s latest report highlights the enormous contribution that social care makes to the UK economy. In 2024/25, the sector contributed £77.8 billion to the economy and supported around 1.60 million filled posts. Social care is not a burden; it is a major economic asset, underpinning communities and enabling millions to remain in work. 

A stable and sustainable social care system is essential to the NHS. When providers struggle or close, hospital discharge slows, beds are blocked, and pressure grows across the health system. Investment in social care is, therefore, not only the right thing to do, it is fundamental to any long-term NHS strategy.

Chancellor, this Budget presents a crucial opportunity to stabilise and strengthen the sector. We are not asking for extravagance; we are asking for recognition and fair support.

We need a budget that:

• prevents further provider failures

•. strengthens and values the workforce

• supports providers to meet rising costs sustainably; and

• acknowledges social care as a significant economic driver.

Providers are doing everything they can, but resilience alone cannot carry the sector any further. Without action, closures will accelerate and the consequences will be immediate, felt by families, by the NHS, and by the UK economy. 

I urge you to take these concerns into account in your forthcoming Budget. Social care has the potential to be one of the UK’s greatest strengths, but it urgently needs your support. 

Thank you for your time and attention. I would welcome the opportunity to discuss these issues further with you or your officials.

Yours sincerely,

Mike Padgham

Honorary President iCG