12 June 2025
Yesterday, 11 June 2025, Chancellor of the Exchequer, Rachel Reeves, presented her Spending Review to Parliament, outlining record NHS investment, a landmark £39 billion commitment to social housing, measures that allow for an increase of over £4 billion in funding available for adult social care in 2028–29 compared to 2025–26, and investment into children’s social care.
The Social Care Institute for Excellence (SCIE) submitted a representation to the Spending Review in February, highlighting that the social care sector urgently needs targeted investment in prevention, workforce stability, housing with care, and integrated community-based support. Without this, progress towards a National Care Service and the Government’s own missions will continue to stall.
Yesterday, Kathryn Smith OBE, Chief Executive at SCIE said:
“Today’s announcements are a step in the right direction—but far from the bold, coordinated investment needed for effective reform,” said Kathryn Smith OBE, Chief Executive at SCIE.
“Social care is not a standalone service and it does not operate in a silo. It interfaces with housing, healthcare, and mental health support. The care system can play a role in alleviating pressures across other public services, but without stable funding and investment, it could also compound them. In other words, the Government’s vision for the country depends on an appropriately resourced social care sector.”
The Spending Review confirmed £39 billion of investment over ten years through a new Affordable Homes Programme.
“We welcome the Government’s significant investment in social housing, which is a vital step towards supporting the growing social care needs of our population. Housing, social care, and health are inextricably linked; good housing can prevent escalating care needs and reduce pressures on the NHS and the social care system,” Smith continued.
“People want choices that preserve independence as they age, but current systems are too often hard to navigate and lack inclusive planning. This announcement is a timely opportunity to align the Government’s national housing strategy with social care reform.
“We urge the Government to embed local housing strategies, produced in partnership with people who draw on care and support, and invest not just in the quantity, but in the quality and accessibility of homes.
“Partnership between health, housing, and social care must be woven into policy at all levels to deliver the future communities we all want to live in.”
The Spending Review also outlined an uplift to the NHS’s minimum contribution to adult social care through the Better Care Fund (BCF), which plays a key role in supporting integrated, community-based care.
“The Better Care Fund is designed to support hospital discharge pathways, virtual wards, and Home First models—all of which depend on robust and responsive social care.
“The Fund’s success relies on the sector being able to deliver timely reablement, rehabilitation, and ongoing support. Without stable care at home, patient flow stalls and NHS capacity is compromised.
“What we need is not just more investment through the BCF—but alignment of funding with outcomes that work for people, not just systems.”
SCIE believes the long-term success of the Government’s three flagship shifts—from sickness to prevention, hospital to community and analogue to digital—relies on a social care sector that is properly funded, valued, and integrated. Without this, the NHS will remain under pressure, housing strategies will fall short, and the workforce will continue to struggle.
“The Government must see social care as foundational to the country’s future, not a service of last resort,” Smith concluded.
“We are ready to work with national and local leaders to ensure this vision becomes reality.”
Notes to editors
The Social Care Institute for Excellence (SCIE) improves the lives of people of all ages by co-producing, sharing, and supporting the use of the best available knowledge and evidence about what works in practice. We are a leading social care improvement independent charity working with organisations that support adults, families and children across the UK. We also work closely with related services such as health care and housing. We improve the quality of care and support services for adults and children by:
- Identifying and sharing knowledge about what works and what’s new.
- Supporting people who plan, commission, deliver and use services to put that knowledge into practice.
- Informing, influencing and inspiring the direction of future practice and policy.
Our mission is to support best practice, shape policy and raise awareness of the importance of social care, working together. With the government’s ambition of reducing consultancy bills, SCIE can serve as the not-for-profit partner of government, working collaboratively to identify and implement improvements.
If you have any questions regarding this submission, please do not hesitate to contact media@scie.org.uk