A survey conducted by the ADSS, the Local Government Association and the Society of County and Municipal Treasurers, has found 75% of social services departments overspent by£183m last financial year.
This follows an initial survey in January predicting a£205m overspend.
But the report warns most councils do not believe they will be able to sustain or improve their social services this year. Around 85% of councils say they will rely on additional health-related funding to prevent bed-blocking this winter.
Highlighting the difficulties facing social services she said: 'Directors throughout the country are reporting concerns about the state of the employment market and our ability to recruit and retain workers. The growing shortages of places for older people in residential and nursing homes is leading to spiralling costs.'
The LGA's Liberal Democrat group will lobby the government for an extra£1.5bn.