This House of Lords Library Note has been prepared ahead of a debate that is scheduled to take place in the House on 10 December 2015 on the following motion: “[...] that this House takes note of the quality and viability of the residential care sector in the light of the Government’s decision to delay the implementation of the care cost cap”.
Residential Care Sector (305KB PDF)
This Note gives an overview of recent developments in relation to the cap on care costs and an overview of stakeholder views on the quality and viability of the residential care sector in light of the pressures facing the sector. This includes information on the following:
The Care Act 2014 contained provisions relating to adult care and support and health. Under this legislation, the Coalition Government had planned for the provisions relating to the means-test and the cap limiting the amount an individual had to contribute to the cost of their social care during their lifetime to be introduced in April 2016.
In July 2015, following representations from stakeholders in the social care sector, the Conservative Government postponed the introduction of these measures until April 2020. Some stakeholders, for example the Local Government Association, welcomed the postponement of the introduction of the cap on care costs; whereas some groups representing users, such as the Alzheimer’s Society, criticised the move.
Overview of the Sector in Numbers
The Demos Commission on Residential Care has estimated that over 450,000 older and working-age disabled people live in residential care settings. The Department of Health has estimated that there are 154,000 self-funders (who pay for their care) in residential care.
Regarding older people, in August 2014 the Office for National Statistics estimated from census data that more than a quarter of a million (291,000) people aged 65 and over were living in care homes in England and Wales in 2011, representing 3.2 percent of the total population at this age.
In terms of the number of residential care institutions, the Care Quality Commission regulates and inspects more than 17,000 care homes that offer accommodation and personal care for people who may need help to look after themselves.
The Health and Social Care Information Centre, an executive non-departmental public body sponsored by the Department of Health, has estimated from data supplied by Councils with Adult Social Services Responsibilities (CASSRs) that 86,000 people accessed long-term nursing support and 194,000 people accessed residential support provided by such bodies between 1 April 2014 and 31 March 2015.
In addition, the Government has estimated that up to 900,000 individuals work in the care sector as a whole.
Residential Care Sector (305KB PDF)
In January 2026, the government announced a new scheme to support urgent repairs and essential improvements to listed places of worship. Called the ‘Places of worship renewal fund for England’, it replaced the ‘Listed places of worship grant scheme’ which had run since 2001. This briefing provides an overview of both schemes, the government’s reasoning for the change and the reaction of stakeholders.
There have been big differences in expenditure across different forms of healthcare for a number of years. In 2024/25, spending on acute care was £74.7bn, compared to £14.5bn on primary care and £13.8bn on community services. Both the 2024 Labour Party manifesto and the subsequent 10 year health plan for England contained an emphasis on shifting towards more care being delivered in local communities rather than in acute settings, dubbed a ‘neighbourhood health service’.
Myalgic encephalomyelitis, also known as ME or chronic fatigue syndrome, is a long-term health condition that is estimated to affect over 400,000 people in the UK. It is a fluctuating condition with symptoms including fatigue, sleep problems and brain fog. In 2025 the government published its final delivery plan on ME, which aimed to improve care and support for those with the condition.
