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Care providers have warned the government that the UK social care system is “at breaking point” as it struggles with rising demand and high costs.

It comes as thousands of care and support providers, and some of those who rely on the service, plan to stage a demonstration in central London to urge the government to give more support to the ailing sector.

The planned rise in National Insurance contributions for employers combined with the increase in the national minimum wage, set to come into effect in April, could lead to some providers going out of business, according to Providers Unite, a coalition of social care organisations campaigning for long-awaited social care reform.

Research by the independent think tank The Nuffield Trust estimates that the rises, announced by Chancellor Rachel Reeves last October, could cost the sector an extra £2.8bn a year.

Rachel Reeves announcing the rise in National Insurance contributions for employers in October
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Rachel Reeves announcing the rise in NI contributions for employers in October

The government has already announced an additional £600m to help support the social care sector.

But the chair of the National Care Association, Nadra Ahmed, said the proposed increases will cancel out that government support.

“It is inconceivable that politicians fail to understand that a lack of investment will impact heavily on both the NHS and local government,” she said.

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“It is this lack of recognition or investment which has led to a watershed moment at a time when the need for our services continues to grow. The sector is at breaking point.”

Ms Ahmed said increased costs had not kept pace with funding levels and warned some care providers could end up bankrupt.

Jane Jones, owner of Applewood Support, a homecare provider in Nuneaton, Warwickshire, said her costs will rise by and estimated £6,000 a month when the National Insurance rise comes into force.

Jane Jones, the owner of Applewood Support
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Jane Jones, the owner of Applewood Support

“I felt sick when I heard the chancellor announce the rise in NI,” she told Sky News.

“It’s not feasible. I’ve had to make cuts in the office. We’ve got rid of two personnel because we just can’t afford it. It’s an attack on growth.”

The care sector employs nearly two million workers and supports more than 1.2 million people.

Pensioners Shiela and Paul Banbury have been married for 59 years and rely on Applewood to care for 82-year-old Sheila at home after she was diagnosed with Alzheimer’s in 2018.

Sheila Banbury who relies on carers to live with her husband Paul
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Sheila Banbury relies on carers to live with her husband Paul

Paul Banbury
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Paul Banbury

Paul, 77, says if they could not get home care Shelia would have to move into a care home.

“It would be very difficult after such a long time together. We want to be able to stay together in our home.”

Most care providers receive a fixed price for care, set by local councils. That means that rises elsewhere in the system are difficult to manage.

“We cannot increase our costs like the supermarkets can and are limited to what the government and councils can pay us,” says Ms Jones.

“So if they can’t pay us the right amount of money, we’re just going to go close our doors. And I think that’s what’s going to happen come April.”

Mike Padgham, chair of The Independent Care Group, urged the chancellor to review her budget measures and make care providers exempt from the National Insurance rise in the same way that the NHS is.

“We have suffered for more than 30 years and enough is enough. People who rely on social care and those who deliver it deserve better,” said Mr Padgham.

The government has published plans to reform the social care system, aiming to establish a National Care Service designed to bring it closer to the NHS.

Health and Social Care Secretary, Wes Streeting, announced the formation of an independent commission, chaired by Baroness Louise Casey, to develop comprehensive proposals for organising and funding social care.

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The three key questions about the China spy case that need to be answered

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The three key questions about the China spy case that need to be answered

The government has published witness statements submitted by a senior official connected to the collapse of a trial involving two men accused of spying for China.

Here are three big questions that flow from them:

1. Why weren’t these statements enough for the Crown Prosecution Service (CPS) to carry on with the trial?

For this prosecution to go ahead, the CPS needed evidence that China was a “threat to national security”.

The deputy national security adviser Matthew Collins doesn’t explicitly use this form of words in his evidence. But he comes pretty close.

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In the February 2025 witness statement, he calls China “the biggest state-based threat to the UK’s economic security”.

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Six months later, he says China’s espionage operations “harm the interests and security of the UK”.

Yes, he does quote the language of the Tory government at the time of the alleged offences, naming China as an “epoch-defining and systemic challenge”.

But he also provides examples of malicious cyber activity and the targeting of individuals in government during the two-year period that the alleged Chinese spies are said to have been operating.

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Witness statements published in China spy trial

In short, you can see why some MPs and ex-security chiefs are wondering why this wasn’t enough.

Former MI6 head Sir Richard Dearlove told Sky News this morning that “it seems to be there was enough” and added that the CPS could have called other witnesses – such as sitting intelligence directors – to back up the claim that China was a threat.

Expect the current director of public prosecutions (DPP) Stephen Parkinson to be called before MPs to answer all these questions.

2. Why didn’t the government give the CPS the extra evidence it needed?

The DPP, Stephen Parkinson, spoke to senior MPs yesterday and apparently told them he had 95% of the evidence he needed to bring the case.

The government has said it’s for the DPP to explain what that extra 5% was.

He’s already said the missing link was that he needed evidence to show China was a “threat to national security”, and the government did not give him that.

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What does China spy row involve?

The newly published witness statements show they came close.

But if what was needed was that explicit form of words, why was the government reticent to jump through that hoop?

The defence from ministers is that the previous Conservative administration defined China as a “challenge”, rather than a “threat” (despite the numerous examples from the time of China being a threat).

The attack from the Tories is that Labour is seeking closer economic ties with China and so didn’t want to brand them an explicit threat.

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Is China an enemy to the UK?

3. Why do these statements contain current Labour policy?

Sir Keir Starmer says the key reason for the collapse of this trial is the position held by the previous Tory government on China.

But the witness statements from Matthew Collins do contain explicit references to current Labour policy. The most eye-catching is the final paragraph of the third witness statement provided by the Deputy National Security Adviser, where he quotes directly from Labour’s 2024 manifesto.

He writes: “It is important for me to emphasise… the government’s position is that we will co-operate where we can; compete where we need to; and challenge where we must, including on issues of national security.”

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In full: Starmer and Badenoch clash over China spy trial

Did these warmer words towards China influence the DPP’s decision to drop the case?

Why did Matthew Collins feel it so important to include this statement?

Was he simply covering his back by inserting the current government’s approach, or was he instructed to put this section in?

A complicated relationship

Everyone agrees that the UK-China relationship is a complicated one.

There is ample evidence to suggest that China poses a threat to the UK’s national security. But that doesn’t mean the government here shouldn’t try and work with the country economically and on issues like climate change.

It appears the multi-faceted nature of these links struggled to fit the legal specificity required to bring a successful prosecution.

But there are still plenty of questions about why the government and the CPS weren’t able or willing to do more to square these circles.

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Trump’s second term fuels a $1B crypto fortune for his family: Report

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Trump’s second term fuels a B crypto fortune for his family: Report

Trump’s second term fuels a B crypto fortune for his family: Report

The Trump family’s crypto ventures have generated over $1 billion in profit, led by World Liberty Financial and memecoins including TRUMP and MELANIA.

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SEC chair: US is 10 years behind on crypto, fixing this is ‘job one’

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SEC chair: US is 10 years behind on crypto, fixing this is ‘job one’

SEC chair: US is 10 years behind on crypto, fixing this is ‘job one’

SEC Chair Paul Atkins said the US is a decade behind on crypto and that building a regulatory framework to attract innovation is “job one” for the agency.

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