Social care is anticipated to make up 38 per cent of the total council overspend in Wales this financial year, equating to £69m. 

Councils report demand for services is rising, budgets are tightening, and needs are becoming more complex. They warn that without long-term investment from Welsh Government, essential care for children, families and older people will become harder to sustain. 

This year, adult and children’s services are seeing more complex cases and are experiencing higher costs. In 2023/24, social services in Wales responded to nearly 450,000 contacts, an eight per cent rise on the previous year. 

Demand for home care, support for people with learning disabilities, and mental health services is also rising. More than 81,000 people now rely on ongoing care and support from social services.    

The Welsh Local Government Association’s (WLGA) 2025 Social Services Pressures Report shows that social care accounts for over £200m of council budget pressures in 2026-27. That is more than a third of all local government pressures. Around £126m of this is driven by staff pay and rising costs, and £75m by growing demand. 

Councillor Andrew Morgan OBE, Leader of the WLGA took part in a panel discussion at the Welsh NHS Confederation Annual Conference, highlighting the key role of local government in building a more preventative and sustainable health and care system and the importance of working in close partnership with health and other partners. 

Councillor Andrew Morgan OBE, WLGA Leader said: 

“Social care is about people and relationships. Every day, social care workers, social workers and families make an extraordinary difference to someone’s life, often in difficult circumstances. I was pleased to join discussions with the Welsh NHS Confederation, highlighting the critical role of social care in supporting an effective NHS and identifying opportunities for closer collaboration to maintain good health and support communities with their wellbeing and independence. 

“Councils are working closely with health partners to support hospital discharge and help people live independently. But rising demand and costs mean councils can’t manage this alone. We’re calling for a long-term plan for social care, with real investment in prevention, the workforce and partnership working.  

“Even with the financial pressures, services are still performing well. Care Inspectorate Wales rates 84 per cent of adult care and 78 per cent of children’s services as good or excellent and I thank all staff for their hard work and commitment to deliver care and support services every day of the week. 

“Councils are determined to keep providing the support people rely on, but we need a long-term plan that values care as a vital part of our communities. Investing in social care means investing in people, in dignity and in the strength of Wales itself.”