Struggling to Survive: The Silent Crisis in Social Care Post-Budget

As Chancellor Rachel Reeves prepares to unveil her new Budget, small business owners and social service providers are still grappling with the fallout from last year’s financial decisions. Neil Woodbridge, who runs Thurrock Lifestyle Solutions, shared his fears that last year’s National Insurance (NI) changes would be disastrous, and indeed, with costs increasing to an extra £8,000 per month, they have been. Compromised financial sustainability has delayed staff pay raises and led to a staff shortage, putting pressure on the demand in social care where 10 additional staff are desperately needed.

Gina Bonsu, a businesswoman from Grays, agrees that the changes have taken a toll. She has avoided expanding her workforce amidst a tightening economy, noting that customer spending has diminished post-Budget, causing further stagnation in business growth. The hope for the upcoming Budget rests on the potential removal of the two-child benefit cap, something that Woodbridge believes would help alleviate the plight of four million children living in poverty.

Meanwhile, John Paddick, who manages the Thurrock Centre for Independent Living, expressed his concerns about the sector’s declining financial support. He highlights how the previous Budget’s impact has led to a reduction in services and potential closure of vital support offerings for disabled individuals.

On the other hand, Dean Plunkett, who operates Eazee Learning, sees some benefits from last year’s decisions, noting slight improvements in NHS services, though he also points out the increased waiting times at A&E.

As the new Budget approaches, there is a palpable sense of urgency among these business leaders and social entrepreneurs. They call for targeted support for the disability community, emphasizing the need for financial relief and effective benefits to uplift the most vulnerable during this challenging period.