The Department of Health and Social Care (DHSC) has announced a 7.7% increase in NHS-funded nursing care (FNC) rates for the 2025-26 financial year, effective from 1 April 2025. This adjustment raises the standard FNC rate from £235.88 to £254.06 per week, benefiting over 75,000 care home residents in England.
While this increase is a positive development, the care sector continues to face significant challenges. Martin Green, Chief Executive of Care England, acknowledges the FNC uplift as a “step in the right direction” but warns of ongoing pressures threatening the sustainability of nursing in social care settings. Key concerns include the upcoming rise in employer National Insurance contributions, projected to cost providers in England £940 million in 2025-26, and the narrowing wage gap between care home nurses and lower-paid staff due to above-inflation increases in the National Living Wage.
Additionally, care providers are grappling with escalating operational costs. For instance, one care home anticipates an extra £267,000 in expenses due to the combined impact of National Insurance and wage increases, necessitating a 10% hike in resident fees to maintain financial stability.
To ensure the viability of nursing care within social care settings, it’s crucial for integrated care boards to align their NHS Continuing Healthcare (CHC) rates with the FNC increase. CHC involves comprehensive NHS funding for individuals with primary health needs. Without corresponding adjustments in CHC rates, providers may struggle to offer nursing care, exacerbating challenges in hospital discharges and overall patient flow.
While the 7.7% FNC rate increase is a welcome measure, the care sector continues to confront relentless financial and operational pressures. Addressing these challenges requires coordinated efforts from all stakeholders to ensure the sustainability and quality of nursing care services.
