Care providers across the Island have expressed deep concern following Isle of Wight Council’s decision to increase residential care fees by 2.34 per cent and domiciliary care fees by 2.99 per cent for the coming year – figures which fall short of the estimated 3.8 per cent required simply to keep pace with rising costs.
While providers recognise the financial pressures facing the Council, there is growing alarm that the current approach risks undermining the long-term stability of the Island’s care system.
Courts have been clear on this point. In January 2025, the High Court ruled in R (SARCP) v Stoke-on-Trent City Council that a local authority acts unlawfully when it sets fee increases based primarily on what it can afford, without properly assessing the actual costs faced by providers. That legal obligation applies equally here.
A widening gap between cost and funding
The uplift assumes that cost pressures are largely limited to increases in the National Living Wage. However, providers highlight that this overlooks a critical reality:
- Wage increases must be applied across the whole workforce to maintain pay differentials, retain experienced staff, and avoid further turnover.
- Non-pay costs – energy, food, insurance, and supplies – are rising significantly above the 0.6 per cent allowance implied in the settlement.
- Demand is increasing, with residents presenting with more complex and acute needs, requiring higher staffing levels and greater expertise.
Taken together, this creates a widening gap between the true cost of care and the funding available to deliver it.
We believe the legal duty on local authorities is to assess what care genuinely costs – and then consider how to meet that cost. Setting a budget first and working backwards is not a lawful approach to fee-setting.
Risk to quality and sustainability
Providers are clear that this is not simply a financial issue – it is a system risk.
If fees do not keep pace with both cost and demand, providers will face increasingly difficult choices. Over time, this risks:
- Reduced capacity in the local market
- Increased pressure on staff and higher turnover
- A gradual erosion in quality as providers are forced to cut costs
This runs counter to the clear message from the Council’s own budget consultation, where supporting and protecting vulnerable residents was identified as a top priority for Islanders.
Concerns over engagement and understanding
The Isle of Wight Care Partnership has made efforts to engage constructively with local councillors ahead of these decisions, offering to share insight into the real pressures facing providers and the wider care system.
However, this engagement received very limited response. This is disappointing given the complexity of the sector and the importance of informed decision-making. Providers remain concerned that key decisions are being taken without a full understanding of the operational and financial realities on the ground.
A national problem with local consequences
Providers are united in the view that the root of the issue lies beyond the Island.
Years of sustained pressure on local government funding, combined with rising regulatory and workforce costs, have left councils in an increasingly constrained position. At the same time, national policy continues to drive up costs within the care sector without providing sufficient funding to match.
The result is a system where local authorities are being asked to deliver more, with less—placing unavoidable pressure on frontline services.
Call for constructive dialogue
Local care providers are calling for a more open and forward-looking conversation about how to ensure the long-term sustainability of adult social care on the Island.
As part of this, invitations will be extended to Isle of Wight MPs Joe Robertson and Richard Quigley to engage directly with providers and understand the challenges facing the sector.
There is a shared commitment to working collaboratively with both local and national stakeholders. However, providers are clear: without a funding approach that reflects the real cost and complexity of care, the system will become increasingly fragile.
Ian Bennett, Residential Director of the Isle of Wight Care Partnership, said,
“This is about stability, not profit, if fees don’t track the reality of delivering care, the risk ultimately sits with the Council and, more importantly, with the vulnerable people who rely on these services.”
News shared by Ian on behalf of Isle of Wight Care Partnership. Ed
