The Association of Mental Health Providers welcomes the latest State of the Adult Social Care Sector and Workforce in England report from Skills for Care, which highlights both progress and persistent challenges in securing a sustainable, skilled, and fairly rewarded social care workforce.

While the sector’s contribution to the economy has grown – now worth £77.8 billion – the report underlines that recruitment, retention, and workforce wellbeing remain fragile and uneven across regions and service types.

A Growing Sector Under Pressure

The workforce grew by 3.4% in 2024/25, reflecting resilience across the sector. Yet this growth remains heavily dependent on international recruitment, which has slowed significantly – with new overseas recruits halving from 105,000 to 50,000 in a year, and the number of British workers continuing to decline.

As migration routes tighten and visa eligibility changes, the sector risks losing vital capacity. Sustained investment in domestic recruitment and workforce development is essential if social care is to keep pace with increasing demand and deliver safe, person-centred support.

Pay, Conditions, and Workforce Reform

The report reinforces the urgent need for better pay and conditions. Two-thirds of providers still offer only statutory sick pay, and the proportion of care workers with a Level 2 qualification has fallen to 38%, down from nearly half just six years ago.

Reforms such as the forthcoming Employment Rights Bill, the proposed Fair Pay Agreement, and the development of a National Care Service represent critical opportunities to drive parity of esteem with the NHS, improve pay equity, and provide clear career pathways across the care workforce – including within mental health social care.

Mental Health Social Care: A Sector Facing Workforce and Funding Pressures

The Association’s data mapping project shows that within mental health social care, workforce challenges are even more acute. As of late 2024, there were around 13,500 vacant posts, with average turnover at 22.6%, and more than 40%in some specialist services.

These issues are compounded by the funding challenges facing VCSE mental health service providers, who deliver a significant proportion of community-based care and support. Short-term commissioning cycles, limited uplifts to contracts, and rising costs are constraining providers’ ability to invest in staff, training, and service development.

Without sustainable and equitable funding, workforce improvements – however well-intentioned – cannot be realised in practice. The VCSE sector’s ability to attract, retain, and support skilled staff is fundamental to the delivery of effective, person-centred mental health care.

Building a Sustainable and Valued Workforce

With the population aged over 65 projected to rise sharply, Skills for Care estimates that 470,000 new social care posts will be needed by 2040. Meeting that need will require a long-term strategy that brings together workforce, pay, and funding reform.

Dania Hanif, Interim Chief Executive of the Association of Mental Health Providers, said:

“This year’s report highlights a sector that is growing but still stretched to its limits. VCSE mental health service providers are facing rising demand, complex needs, and constrained funding – all while trying to recruit and retain skilled staff. To build a sustainable workforce, the government must align workforce policy with fair and secure funding for the services that depend on it. The Employment Rights Bill, Fair Pay Agreement, and National Care Service reforms must deliver not only better pay and conditions, but also stability and parity for mental health social care. Investing in this workforce means investing in the people and communities that rely on it every day.”