Wandsworth Council is set to increase fees for adult social care services by 2.2% from 1 April 2025, as revealed at the Health Committee meeting on Monday 01 December 2025. The decision aims to mitigate costs within the Adult Social Care sector, where service user contributions are based on their ability to pay, as determined through a financial assessment.

The decision comes as the committee grapples with a projected £2.685 million overspend, against a revised budget of £102.660 million. Increased demand and rising costs in Adult Social Care are the primary drivers behind the financial strain.

Sarah Evans, who presented the budget report, explained that the overspend was largely due to increased demand and costs in Adult Social Care. She noted that all client groups have experienced increases in care needs, leading to increases in fee rates required by the provider market.

Both complexity of need and market conditions are leading to increased prices within the market, Evans said. She also highlighted the impact of pressures within the NHS, which are leading to patients being discharged more quickly into the care system.

While most service users contribute to their care costs based on individual financial assessments, the proposed increase will affect those charges not subject to such assessments. The report, detailed in Appendix D, outlines the specific fee adjustments.

Despite the budget challenges, the council is actively pursuing mitigating actions. The Transforming Social Care Programme aims to maximise people’s independence by preventing, reducing or delaying the need for long term care. This includes:

  • Implementing Reablement First to increase referrals for reablement services.
  • Increasing the use of care technology to support independent living.
  • Improving referral management through technology at the first point of contact.
  • Piloting a health and care integration project to co-ordinate services and support person-centred discharge and recovery.

The report identifies several risks and challenges associated with the Transforming Social Care Programme:

  • The social care sector continues to face challenges arising from a combination of factors including increased demand for care and support, people presenting with more complex care needs, inflationary pressures and pressures within the care market all leading to increased costs.
  • There is a strong inter-relationship between health and social care with both sectors being equally important. With financial pressures facing both sectors there is a need for the whole system to work closely together to avoid costs being transferred from health to social care. There is a risk without this that planned efficiency savings in health could result in additional costs for the Council’s social care services with an increasing number of people whose care and support were covered by the NHS (Continuing Healthcare) or jointly funded, are now having to seek support from the Council with care packages at a higher cost than Council budgets are able to meet.
  • The pressures faced by social care pose a significant threat to spending on preventative services as with increased care needs requiring more hours of complex care and support there could be less resource available for preventative services.
  • Care home and home care providers continue to face rising costs with pressures arising from wage inflation with a 10% increase in London Living wage in 2024/25 and a further 5.3% increase in 2025/26. The increase in employers National Insurance with effect from April 2025 will also contribute to an increase in provider costs and whilst additional funding of £880 million for social care in the recent Local Government Finance Settlement is welcomed and will contribute towards these additional costs it has raised concerns around the sustainability of the UK’s adult care and support market.

The committee also heard that work continues to ensure residents receive NHS-funded care where eligible, and that changes to funding arrangements are challenged as appropriate. A joint effort across South West London boroughs and the South West London ICB aims to improve collaboration and avoid cost transfers between sectors.

While the fee increase is intended to address immediate budget concerns, the long-term financial sustainability of adult social care remains a key focus for Wandsworth Council.