Navigating Challenges & Creating Opportunities: A Provider Perspective

The UK’s social care sector is facing some serious challenges, and as providers, we’re grappling with increasingly tough conditions. However, within these difficulties, we also see opportunities to drive real change—transforming the market, improving outcomes, and raising care standards. At Alternative Futures Group (AFG), we’re not just responding to these pressures; we’re leading the discussion on how the sector can move forward and thrive.

The Current State of Social Care

Years of underfunding have left their mark on social care, with austerity putting immense strain on local councils—especially in the North West. According to The King’s Fund, local government spending on social care fell by 12% between 2010/11 and 2014/15, and despite recent increases, funding levels have not returned to pre-austerity levels. Providers are feeling the pinch, with councils paying as much as 20% below the going rate for a fair cost of care. This underfunding means that paying the Real Living Wage (RLW) to staff, while continuing to deliver quality care, is a challenge for many.

“Social care is in crisis, and it’s not just about money,” says Ian Pritchard, CEO of AFG. “It’s about acknowledging the vital role care providers play in our communities and making sure our workforce feels valued and supported.”

Despite these difficulties, AFG continues to adapt, providing high-quality care to over 850 adults. Our commitment to improving employee engagement has seen satisfaction rise from 36% to over 78%, showing the real impact of investing in our people and the communities we support.

Fragmentation & Instability in the Market

One of the biggest issues we face in the sector is market fragmentation. With over 15,000 care providers, many of them small-scale, the system is rife with inefficiencies and poor practice. This not only drives up costs but also creates inconsistencies in the quality of care delivered.

“We need to have an honest conversation about consolidating the market,” Ian suggests. “If we reduce fragmentation and work more collaboratively as providers and payors, we can reinvest resources into pay, training, and delivering even better care. This would also create significant opportunities for strategic commissioning, which could help create a more progressive and sustainable future for the entire sector.”

At AFG, we believe provider collaboration and engagement is key. By working closely with local authorities, the NHS, and other stakeholders, we can build a care system that’s not only efficient but also truly responsive to the needs of those we support.

Valuing Our Care Workforce

The social care workforce is one of the sector’s greatest assets, yet it remains underappreciated. Despite being on the frontline of care, workers face low wages and few opportunities for advancement. The Health Foundation reports that average pay in the sector remains low, with care workers often earning below the national average wage. While the government has made promises to improve conditions, unless these are backed by proper funding, we risk losing talented, dedicated professionals to other sectors.

“Without our workforce, there’s no social care,” Ian stresses. “We’ve worked hard to create a positive environment, investing in pay and development opportunities. But for this to last, we need adequate funding and policy changes that reflect the value of the work being done.”

Our investment in pay and engagement has paid off, but lasting improvement requires sector-wide effort. We need to ensure that care workers feel supported, respected, and empowered to continue delivering excellent service.

Seizing Opportunities for Innovation

Despite the hurdles, there are also significant opportunities on the horizon. At AFG, we’ve set ambitious goals to support at least 1,000 people by 2027. We’re driving digital transformation to make our services more adaptable, scalable, and person-centred. Digital technologies in health and social care have been shown to improve outcomes, as highlighted by NHS England’s Long Term Plan which promotes the use of technology to enhance efficiency and quality.

“The future of care will be shaped by those willing to embrace innovation,” Ian says. “At AFG, we’re committed to using technology to enhance care quality and make services more sustainable in the long run.”

We’re also exploring new models of care, focusing on shared resources and collaborative partnerships. By streamlining our operations, we can continue providing top-quality support while navigating the tough financial climate.

A Call for Sector-Wide Reform

The larger question facing social care is: what’s the long-term fix? The focus on elderly care has left significant gaps in support for working-age adults with disabilities or mental health conditions, who make up 50% of those needing care. This imbalance in funding and attention creates a two-tier system that disadvantages vulnerable groups.

“Social care isn’t just about looking after the elderly,” Ian argues. “As a provider for those with a learning disability or autism, we’ve seen our beneficiary groups consistently overlooked in both funding and policy. We need a national discussion about how we fund and prioritise care for all who need it.”

We believe reform must address these inequalities, ensuring that care for disabled and mentally ill adults is no longer neglected.

Building a Better Future Through Collaboration

The challenges in social care are real, but they’re not insurmountable. By focusing on collaboration, embracing innovation, and pushing for genuine reform, we can ensure that the sector doesn’t just survive—but thrives. We’re committed to leading the charge, shaping a future that works for everyone.

A “national care service” should be achieved by shaping the current market not rebuilding a public sector one.

“As providers, we need to be active in shaping the future of social care,” Ian concludes. “By working together, we can ensure that care remains a core part of a fair, compassionate society, providing real value and better outcomes for all involved.”

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