When you pay your council tax, you might assume it covers a balanced mix of local services: bin collections, road repairs, libraries, parks, and social care. But new figures show that for a growing number of councils in England, the scales have tipped dramatically. Sixteen local authorities now spend more than 80% of their core funding on adult and children's social care, leaving precious little for anything else. This isn't just a statistic; it's a sign of a system under immense strain, with real consequences for communities.
The Numbers Behind the Squeeze
According to analysis of government data, councils with social care responsibilities spent a net £42.8bn on adult and children's services in 2025-26. That equates to a record 71.9% of their combined core spending. To put that in perspective, back in 2017-18, care costs made up 62.4% of core spending. The upward trend is unmistakable, and it's accelerating. Adult social care accounts for the largest slice: 44.5% of core spending, while children's services take up 27.4%. For the sixteen councils spending over 80%, the proportion is even more extreme, leaving less than a fifth of their budgets for everything else, from housing to planning to cultural services.
These aren't just numbers on a spreadsheet. They represent real choices about what kind of support is available for elderly people, disabled adults, and vulnerable children. And they raise tough questions about the sustainability of local government as we know it.
Why Social Care Costs Are Rising
Several factors are driving this increase. An ageing population means more adults need long-term care, whether at home or in residential settings. At the same time, the number of children requiring protection or support has grown, partly due to rising awareness and improved identification of needs. But perhaps the most significant factor is the cost of providing that care. Staff shortages have led to higher wages for agency workers, while inflation has pushed up the price of everything from food to energy in care homes.
Meanwhile, central government funding for councils has not kept pace with these pressures. Although councils can raise council tax, many have already hit the cap without a referendum, and the areas with the greatest need often have the lowest tax base. This creates a perfect storm: rising demand, rising costs, and stagnant or falling real-terms funding.
The Human Impact
When councils spend more on social care, other services inevitably suffer. Libraries close, road repairs are delayed, and youth centres shut down. These cuts might seem less urgent than protecting a child or caring for an elderly person, but they have long-term consequences. Youth services, for example, can prevent children from needing social care in the first place. Parks and leisure facilities contribute to public health, reducing the burden on the NHS. When these services are cut, the social care bill can actually rise over time, creating a vicious cycle.
For residents, the effects are tangible. Parents may struggle to find affordable childcare or activities for their children. Elderly people may wait longer for care assessments or find that the support they receive is inadequate. And council tax bills continue to rise, even as services decline. It's a frustrating situation for everyone involved.
What This Means for the Future of Local Government
If current trends continue, more councils will cross the 80% threshold, and some may effectively become social care providers with a few other duties attached. This raises fundamental questions about the purpose of local government. Should councils be responsible for such a wide range of services if they can't fund them adequately? Or should social care be funded differently, perhaps through national taxation or a dedicated levy?
Some experts argue for a radical overhaul of social care funding, moving away from the current means-tested system to a more universal model, similar to the NHS. Others suggest that councils should be given more powers to raise revenue, such as a tourist tax or a local income tax. But these are long-term solutions, and the crisis is here now.
Short-Term Fixes and Long-Term Solutions
In the short term, councils are left with little choice but to cut discretionary services and dip into reserves. But reserves are finite, and many councils have already drained them. Some have issued section 114 notices, effectively declaring bankruptcy, and more may follow. The government has provided some additional funding, but it's a drop in the ocean compared to the scale of the problem.
What's needed is a national conversation about what we expect from local government and how we're willing to pay for it. Do we want councils to focus solely on statutory duties like social care and waste collection, or do we value the broader role they play in building strong communities? The answer will determine the future of our towns and cities.
How Other Countries Handle It
It's worth looking at how other countries manage social care costs. In Germany, for example, long-term care is funded through a mandatory insurance scheme, with contributions from employers and employees. In Japan, a similar system exists, with everyone over 40 paying into a pool that funds care for the elderly. These models aren't perfect, but they spread the cost more broadly and reduce the burden on local budgets. The UK's means-tested system, by contrast, often leaves individuals facing catastrophic costs and councils struggling to fill the gaps.
Of course, no system is without its challenges, and importing a model wholesale rarely works. But there are lessons to be learned about the benefits of pooling risk and funding care collectively. It's a debate that's long overdue.
What Can Residents Do?
It's easy to feel powerless in the face of such big structural problems. But there are ways to engage. Attend council meetings, respond to consultations, and ask your local representatives how they plan to balance the books. Support organisations that provide advice and advocacy for those needing care. And when elections come around, make social care funding a priority in your decision. Change won't happen overnight, but pressure from residents can shift the debate.
Ultimately, the story of these sixteen councils is a warning sign. It shows what happens when demand outstrips resources for too long. And it's a reminder that social care isn't just a niche issue; it's the foundation of a fair society. How we respond will define the kind of country we become.
Frequently Asked Questions
Which councils are spending over 80% of core funding on social care?
The analysis identified sixteen English councils, but the specific names have not been widely publicised. These are likely to be authorities with high levels of deprivation and an older population, where demand for care is greatest and the tax base is weaker. Examples could include some London boroughs and coastal towns, but without official confirmation, it's best to check your own council's budget documents.
How does this affect my council tax?
As social care costs rise, councils often increase council tax to cover the shortfall, up to the cap without a referendum. This means your bills may go up, but the extra revenue is largely swallowed by social care, leaving little for other services. In some cases, councils may also cut services or charge for ones that were previously free.
What happens if a council goes bankrupt?
If a council cannot balance its budget, it may issue a section 114 notice, which effectively freezes all new spending except for statutory services like social care and waste collection. This can lead to drastic cuts and government intervention. It's a last resort and a sign of severe financial distress.
Are there any solutions being proposed?
Various ideas are on the table, including a national care service, increased funding from central government, and allowing councils to retain more business rates. Some propose a dedicated tax for social care, similar to national insurance. However, there is no consensus yet, and any major reform would require political will and public support.
How can I find out how my council spends its budget?
Every council publishes its annual budget and spending data on its website. You can usually find this under 'finance' or 'budget' sections. If you can't locate it, contact your local councillor or make a freedom of information request. Understanding where the money goes is the first step to holding decision-makers accountable.