Scaling up early interventions to prevent social care needs escalating could save the public purse £11 billion within six years, according to research.
But despite a boost in council funding next year, local authorities warn that demand for urgent care alongside increases in wages and national insurance mean they will find it difficult to invest in key initiatives to help people maintain health, independence and avoid crisis.
Analysis by the Labour-led Local Government Association of the impact of 10 early interventions, including physical activity, social prescribing, housing support and community-based care, showed they delivered savings of £3.17 for every pound spent on them.
This scenario would cost an estimated £3.5 billion for all single-tier and county councils in England to implement at an average of £25 million per council, but it could provide an estimated return of up to £11.1 billion in overall savings to these councils, the NHS and the voluntary sector.
The analysis found that almost all the savings would be delivered within six years of implementation, with more than 90% of forecasted savings made in the first three years.
The Time to Act Reform Board, which includes local government and care organisation leaders, said the forthcoming spending review “presents a critical opportunity” for the Government to invest in prevention to secure significant long-term savings across the public sector, while supporting people “to live the lives they want to lead”.
But the LGA said it was “disappointing” that the Chancellor did not provide dedicated funding in the Budget for preventative initiatives that would improve lives and reduce costs.
It added that additional funding was also needed to address “urgent care challenges”, such as long assessment waits, and councils’ “severe and unprecedented” funding and demand pressures.
The LGA said the additional £600 million announced in the Budget for 2025/26 would be largely absorbed by the rising costs of the national living wage and and national insurance increases.
David Fothergill, chair of the LGA’s community well-being board, said: “Properly funded preventative services would mean councils, working closely with partners and people drawing on support, can maximise the impact of their resources and address community needs.
“This will also drive down demand for more expensive acute health and social care support.
“This report brings together a coalition of support for people with lived experience and other partners in the sector, which shows the importance of prevention being embedded as a core element of health and care systems, rather than being treated as a supplementary service only supported when budgets allow.”
He added: “It’s about supporting people’s ability to live the lives they want and to flourish.
“By focusing on earlier action and support, we can build a system rooted in independence, resilience and equity.
“This is our moment to align vision with action, empowering councils, communities, and people to co-create a future where everyone thrives.”
The Government has been approached for comment.
