The Carer Digital - Issue #269

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FOR NURSING AND RESIDENTIAL CARE HOMES

W W W. T H E C A R E R U K . C O M

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Issue 269

2025 - A Year in Review

A Year of Crisis, Campaigning and Cautious Hope

As 2025 draws to a close, the residential and nursing care home sector looks back on twelve months defined by financial pressure, fierce advocacy, and fundamental questions about the future of adult social care in the United Kingdom. From the formation of the Providers Unite campaign to the launch of the Casey Commission, from workforce crises to dementia care innovations, this has been a year when the sector refused to be silent about its struggles—and continued to deliver exceptional care despite unprecedented challenges.

THE FINANCIAL SQUEEZE

The year began with care providers still reeling from the October 2024 Budget announcement that employer National Insurance contributions would rise from

13.8% to 15%, while the earnings threshold dropped to £5,000. Combined with a 6.7% increase in the National Living Wage to £12.21 per hour in April 2025, providers faced what industry leaders described as an existential threat. An 81% drop in overseas care worker visas, coupled with the closure of the care worker visa route, left providers scrambling to fill essential roles, while 80% of directors of adult social care reported overspends totalling £774 million nationally in 2024-25. The sector's contribution of £68.1 billion in gross value added to the UK economy stood in stark contrast to the funding challenges it faced.

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