Local authorities have a clear statutory duty to meet the eligible care needs of individuals who require residential accommodation. That duty does not diminish simply because budgets are under increasing pressure.
The recently published Market Sustainability and Improvement Fund (MSIF) 2025–26 fee report highlights the scale of that pressure. Nationally, councils have uplifted provider fees by around 5%-6% across most care categories, including home care, residential care for older people and nursing placements. Despite these increases, the report acknowledges that many local authority rates still lag behind the true cost of providing care – meaning the gap between council funding and provider charges is widening rather than narrowing.
