LaingBuisson has published the seventh edition of their Adult Specialist Care UK Market Report.

Highlights include:

  • The adult specialist care services market in the UK is worth an estimated £19.0 billion (£15.2 billion in England) for financial year 2024/25 – an increase of 3% over 2023/24.
  • While real terms spending on younger adult care services has been on a rising trend since the Covid pandemic, real terms council spending across England in 2023/24 (latest available figures) was still below its 2009/10 peak.
  • Demographic change is the main underlying driver of demand, in particular the ageing of the learning-disabled population, which is the largest client group.
  • The shift from residential to supported living will continue in the future, reinforced by the expansion of housing options for younger adults as investment in supported accommodation continues to grow in a supportive policy environment.
  • The social care recruitment and retention crisis which followed Covid has eased, to the extent that many investors and providers were no longer reporting workforce as their principal operational challenge.

The adult specialist care sector has continued to grow in value as the number of adults receiving support increases, according to research published by LaingBuisson.

LaingBuisson’s latest Adult Specialist Care market report values the total UK market at £19 billion in financial year 2024/25. Given its size, the English market dominates with a market value of £15.2 billion.

In total more than 750,000 adults are receiving support for learning disabilities, physical and sensory disabilities, mental health needs, brain injuries and substance misuse disorders. The independent sector accounts for over 90% of the provision of services for disabilities, mental health support and substance disorders. Funding for these services come overwhelmingly from public sources – 81% from the local authority and 14% from the NHS. Only 5% of the funding comes from private pay, which is usually concentrated on acquired brain injury services and treatment for substance disorders.

The average cost per service user is £24,000 per year. The balance of service settings for the younger adults (those aged 18-64) covered by the scope of this report is strongly weighted towards non-residential care. Non-residential care accounts for 78% of market value.

Over the last fifteen years, there has been a steady decline in the number of younger adults in care homes. In the period for which comparable spending figures are available, the share of expenditure on care in residential settings has declined from 38% in 2014/15 to 32% in 2023/24. The shift from residential to supported living will likely continue in the future, reinforced by the expansion of housing options for younger adults as investment in supported accommodation continues to grow in a supportive policy environment.

One of the main operational concerns for all adult specialist care providers has historically been the workforce. This report has found the social care recruitment and retention crisis which followed Covid had eased, to the extent that many investors and providers were no longer reporting workforce as their principal operational challenge. Vacancy rates have fallen, though still remain high. Workforce issues look set to return to centre-stage again following the latest shift in immigration rules, which close social care visas to new applications from abroad.

Rather than placing reliance on overseas recruitment to make up for skills shortages in social care and other sectors, the Labour government is seeking to promote employment of UK staff amidst wider political focus on unemployment and immigration.

Report author William Laing said:

“The £19 billion spent on adult specialist care is ultimately underpinned by society’s willingness, in the UK as in all other OECD countries, to spend large sums on the care of younger adults with the highest levels of need. Individual lifetime costs sometimes run into several million £s.

“In a growing market, infrastructure funds have been among many investors backing adult specialist care providers. This is despite pressure on margins by local authority and NHS funding bodies, which have led to a halving since 2011/12 of aggregate operating profitability of those providers that report profit and loss to Companies House.”

– Ends –