PLMR’s Health and Social Care team report back from the unprecedented grassroots social care demonstration in Westminster last week, and look at what the provider-led action could mean for the future of the sector.
On Tuesday February 25th, thousands of people gathered outside the Houses of Parliament for the Providers Unite rally, a demonstration against the financial strain placed on the Social Care sector – most recently by the Government’s Autumn Budget.
The movement was spearheaded by a grassroots coalition of care providers, calling for urgent reforms to what many fear could be a systemic collapse of social care services across the country.
Initially prompted by the budget’s unsupported Employer National Insurance hikes and National Living Wage increases, the movement may actually be a signal of a wider shift in the long over-burdened sector.
Why exactly are social care providers protesting?
At the heart of the action is the financial burden imposed by Labour’s budgetary measures, which many argue are being implemented without adequate funding support for providers. The key policies include:
- A 6.7% increase in the NLW – rising from £11.44 to £12.21 per hour from April.
- An increase in employer National Insurance contributions – rising from 13.8% to 15%.
- A reduction in the National Insurance threshold – meaning employers will start paying at £5,000 instead of £9,100.
Analysis by the Nuffield Trust estimates that these changes will add £2.8 billion in additional costs to independent care providers in 2025-26 alone. While the government has provided £880 million in extra social care grants, this falls far short of the £2 billion needed by councils to cover the shortfall in provider costs.
For many care providers—particularly small and medium-sized businesses—this could be catastrophic, leading to closures, loss of capacity, and increased pressure on family carers and the NHS.
Key messages from the rally
PLMR’s Health and Social Care team were on the ground during the rally, and hosted key players of the Providers Unite movement at our Westminster office. These are the demands to the government they made clear:
1. Recognition & respect for social care
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- Social care is not a secondary service to the NHS; it plays a vital role in supporting individuals with disabilities, older adults, and those needing long-term care.
- Investing in social care is an investment in public health and well-being.
2. Fair pay for social care workers
- Despite employing 1.6 million workers, social care staff remain underpaid and undervalued compared to their NHS counterparts.
- Providers support increasing the NLW but argue that without government funding, these costs will be impossible to absorb, risking widespread redundancies or closures.
3. Sustainable funding for community care services
- The government must urgently reassess the financial support available to the sector.
- Without proper investment, essential services—including home care, mental health support, and disability services—are at risk of collapse.
Can the government concede?
While Providers Unite’s rally sends a strong message, with campaigners describing the underfunded sector as a ‘Cinderella service’, the reality is that the government is unlikely to reverse course. Labour is under immense pressure to balance public finances and reduce national debt, with fiscal watchdogs warning that meeting borrowing targets will require either spending cuts or tax increases.
This means that social care funding is competing with other pressing demands, including NHS investment, education, and local government support. However, campaigners argue that failing to fund social care ultimately costs more in the long run, as it places greater strain on hospitals, emergency services, and unpaid family carers.
On the other hand, these thousands of providers represent the vast and structurally diverse sector that is social care. Although their mission statement is concise, is there really a one-size-fits-all solution? Is there a possibility to meet in the middle with a united ask, if Providers Unite are able to garner enough attention to mobilise action?
What happens next?
With an unprecedented number of providers and individuals signing an open letter to Chancellor Rachel Reeves since the uprising started in November, the social care sector is demanding change now. And PLMR is at the heart of the action, planning an upcoming interview with Katrina Hall, Director of Bay Care Group and founding member of Providers Unite, to get a direct insight into the movement’s next steps.
Despite the uphill battle for additional funding, this historic day of action demonstrates the growing unity and determination of care providers, workers, and service users. Whether this leads to immediate government concessions or simply amplifies the urgency of long-term reform, one thing is clear: the sector will not stay silent.
