Ategi responds to new Government budget and its impact on social care

On 30 October 2024 Rachel Reeves, the Labour Government's Chancellor, and the UK's first female chancellor, announced her first historic budget. Find out what it means for the social care community.

The recent UK Budget has introduced some big changes, £40bn in tax rises - including a notable increase in National Insurance (NI) contributions for employers starting April 2025. This increase, the biggest tax rise of its kind in decades, places a heavier financial load on employers across the board—including charities like Ategi, which provides Supported Living, Community Support, and Shared Lives services to adults with additional needs in England and Wales. While this move is aimed at shoring up public finances and funding the NHS, there’s a real concern it leaves out an essential piece of the puzzle: social care.

Social care and the NHS work closely together to support people across the UK. But the budget’s focus on the NHS without similar support for social care services misses the fact that both are essential to keeping our communities healthy and thriving. More investment in the NHS is good news, but overlooking social care could put even more pressure on hospitals and healthcare facilities—making it harder to keep up with demand. Social care charities like ours play a huge role in supporting people’s day-to-day needs, helping them live independently, stay connected, and avoid hospital visits in the first place.

Why social care needs equal investment

The people we support through our programs rely on consistent, high-quality community care to live safely and with dignity. When social care is underfunded, the NHS inevitably feels the strain, with more patients needing hospital care for issues that could have been managed at home or in the community. By only focusing on the NHS, there’s a risk of creating bottlenecks and missing out on a real opportunity to help people before they need acute medical care.

A well-funded social care system goes hand-in-hand with a strong NHS. Both sectors support each other, and investing in social care keeps the healthcare system from being overburdened. When people can get the support they need in their homes and communities, they stay healthier, which reduces the need for more intensive medical intervention.

Looking ahead

At Ategi, we believe that strengthening social care is key to creating healthier, more resilient communities. The government has taken important steps to boost NHS funding, but it’s essential they recognise the value of social care as well. Supporting social care isn’t just about funding; it’s about making sure people have the chance to live independently, stay connected, and thrive in their communities. We’ll keep advocating for fair support for social care so we can continue to do just that.