The ADASS Spring Survey 2024 – Highlighting the Critical Role of Interim Executive Leadership in Adult Social Care

The 2024 Spring Survey from the Association of Directors of Adult Social Services (ADASS) sheds light on the escalating financial instability faced by local authorities, revealing the growing pressure on adult social care and raising urgent concerns about its sustainability. In such a challenging landscape, the need for interim executive leadership is more necessary than ever, as it offers a vital solution for navigating these turbulent times.

One of the most alarming findings from the survey is the huge overspend on adult social care budgets. In 2023-24, overspend reached £586 million. To put this into context, it marked the highest overspend in a decade, increasing from £73 million in 2022-23, in a year when 72% of councils reported deficits. Many local authorities are resorting to one-off funds like reserves to cover these gaps, which are, by definition, not sustainable. This casts doubt on the long-term viability of social care funding. Interim executives bring the much-needed expertise and agility to effectively manage such financial crises, ensuring that money is spent in ways that maximise value for money.

A common concern raised is whether councils, which are already financially stretched, should be spending more on resources such as interim executives. However, it is important to address this directly: interim leaders provide value for money by bringing specialist knowledge and skills that can help prevent financial mismanagement, ensure efficiencies, and avoid costly long-term errors. Their short-term contracts allow local authorities to access top talent without the long-term financial commitment of permanent hires, making it a cost-effective solution.

The report shows that the market is unstable – 65% of councils report care provider closures within the last six months, affecting care for over 5,000 people. These closures are particularly prominent in certain areas, and when we consider the geography, the uneven distribution of care services across the country presents a further complicated issue. Some regions are more heavily affected than others, experiencing even more severe shortages of care providers than depicted by the national statistics. Interim executive leaders play a key role in stabilising the market, bringing their experience to bear on negotiations with care providers, leveraging their networks from working across the country, and implementing best practices gained from their experience across multiple regions. This positions them uniquely to implement strategies that not only drive local improvement but also ensure consistent service availability across the country.

An issue the survey highlights is a 7.4% increase in individuals requiring double-handed care, underscoring the rising demands on care services and the growing complexity of care needs. Additionally, the average number of home care hours per week has risen from 13h 40m to 14h 43m. The combination of increasing demand and complexity not only inflates costs for local councils but also places additional strain on an already overstretched care system.

Another significant finding from the survey is the interdependence of the NHS and adult social care; pressures in one inevitably impact the other. Nearly all directors report an increased burden on adult social care due to challenges within the NHS, with 80% stating that adult social care is being forced to absorb responsibilities traditionally managed by the NHS – often without receiving the necessary funding. In these cases, every pound matters, and the ability of interim executives to effectively manage cross-system collaboration can make a material difference to the standard and breadth of care delivered. They could literally be the key to ensuring that adult social care continues to function effectively despite these additional burdens. Despite some positive steps, such as a 42% decrease in waiting times since 2021, challenges remain. The number of people waiting for an assessment, or the start of care is still very high, with 418,000 individuals needing support.

The ADASS Spring Survey 2024 presents a stark reality for adult social care in England: continued financial pressures, increasing care needs, and market instability all pose significant challenges to local authorities. The margins for error are smaller than ever, and we have seen the ramifications of misspent funding bankrupting local authorities for the first time.

As head-hunters and interim management providers, we are seeing a rising demand for specialists who can help mitigate these challenges on shorter-term contracts. There is also a trend of experienced people leaving the sector and moving into more consultative roles. The upside to this is that there is a greater pool of specialist talent available for shorter, sharper, and more impactful pieces of work. However, we are also seeing an increase in people stepping up into their first senior roles, who inevitably need increased support and time to 'find their feet'. Given the current landscape, local authorities sometimes lack the support or time they need to fully develop these individuals. As a result, the number of local authorities appointing a coach or mentor as wraparound support to those stepping up into senior roles is skyrocketing.

With this in mind, the role of interim executive leadership is more pivotal than ever and recruiting and retaining top talent is as crucial now as it has ever been. This leadership is essential in helping local authorities navigate these complex challenges, drive strategic decisions, and implement sustainable solutions, laying the foundations for a secure future for adult social care.