Members of the Small Supports Network have warned that new evidence from ARC England shows adult social care funding is moving further away from what is needed to sustain high‑quality, person‑centred support, with small supports organisations facing particular risk.
ARC England’s latest Fee Rate Maps show an average 3.5% drop in local authority fee rate uplifts for 2025–26. It comes at a time when providers are facing unavoidable increases in costs, including wage rises linked to the National Minimum and Living Wage, employer National Insurance contributions and wider inflation.
Network members say these uplifts are unacceptable and risk adding to the social care crisis. Fee increases are failing to match statutory employment costs, making social care roles less financially attractive in the short term and forcing many organisations to draw on limited reserves simply to stay compliant with the law.
In the medium term, this position is unsustainable. Reserves will be exhausted, and organisations cannot continue operating legally if funding does not meet minimum wage requirements. Recent employment legislation changes have intensified this pressure without being reflected in local authority fee rates.
A disproportionate impact on small supports organisations
For small supports organisations, the challenge is particularly acute.
Small supports are local, community‑based organisations that provide highly personalised support, often supporting small numbers of people to live good lives in their own homes and communities. They are rooted in relationships, flexibility and choice, offering an alternative to larger, more institutional models of care.
Many small supports organisations are new or relatively young, having grown out of the NDTi Small Supports programme funded by NHS England. They are often non‑profit or operate with very small margins, with the vast majority of their income spent directly on staffing.
Martin Nicholas, Director of Small Support organisation Partners in Support, in Hertfordshire, said:
“For small support organisations the challenge is particularly difficult as many are new and haven’t had the opportunity to develop reserves to navigate challenging times. They are also likely to be non‑profit making or operating with small margins, with the vast majority of income spent directly on staffing costs.
“Offering person‑centred services such as supported living offers far more limited opportunities to reduce budgets without compromising the support provided and placing people at risk.”
Unlike larger providers, small supports organisations have little scope to ‘absorb’ funding shortfalls or generate economies of scale. Cost‑cutting in these settings directly affects people’s lives, relationships and safety.
Risks to quality and safeguarding
Members also warn of a widening disconnect between national commitments to quality and workforce sustainability, and how funding decisions are experienced locally.
Zoe Anderson, CEO of Aspire Support Ltd, a small support organisation in Cornwall, said:
“There is a disconnect between Whitehall’s understanding of people needing good quality care and a sustainable workforce, and how local authorities manage cuts and efficiencies on the ground.
“To survive, providers of all sizes will have to cut corners and make compromises. For those already struggling, or those who put profit before care, this will inevitably lead to an increase in poor practice, placement failures and abuse.”
The Network warns that underfunding does not reduce demand for support but instead increases system‑wide risk, including workforce instability, reduced quality and higher safeguarding concerns.
A call for action
Dave Barras, CEO of Small Supports organisation Positive Support for You, who independently hosts and coordinates the network said:
“The Small Supports Network supports ARC England’s call for urgent action, including fee rates that reflect the true cost of care, greater transparency in adult social care funding, and recognition of the vital role that small, community‑based providers play in delivering personalised support. Small Supports provider organisations are delivering great outcomes to people, some of whom the system has previously failed for many years , and doing this safely and in local communities rather than institutional care.
“Without meaningful change, more small supports organisations will be forced to withdraw or close, reducing choice, innovation and quality for people who rely on bespoke, relationship‑based support.”
Nic Crosby, Small Supports programme lead at NDTi, said:
“Over the past decade we’ve seen small supports transform people’s lives by offering flexible, personal alternatives to traditional care. But these organisations are often young, small and values‑led, with little financial buffer. If the system continues to underfund care, we risk losing exactly the kind of innovation and local provision that policy says it wants more of.”
About the Small Supports Network
The Small Supports Network brings together small supports organisations across England, many of which have emerged from the NDTi Small Supports programme, funded by NHS England.
To find out more about the network, visit www.smallsupports.net
Learn more about the NDTi Small Supports programme, including evidence of impact on people’s lives and local economies, stories from people and families in the Living Library, and a film produced by NHS England.
