public health and social care

15.12.16

Leaders revolt as £900m social care boost ‘a regressive, short-term sticking plaster’

As previously indicated by PSE, communities secretary Sajid Javid has decided to allow councils to bring forward a planned increase in the social care precept, meaning local authorities will be able to raise a 3% care levy in the next two years rather than the expected 2%.

Speaking about the local government finance settlement at the Commons this morning – for which a whopping 97% of councils signed up, as had been expected – Javid agreed with many organisations that social care is the biggest cost pressure on local government at present.

As well as bringing forward the social care precept, which will result in a 6% rise in council tax this Parliament but only add a pound to individual tax bills, the secretary of state also promised to inject savings from major reforms to the New Homes Bonus (NHB) into the care sector for extra padding in 2017-18.

Implementing the 3% precept would allow councils to raise up to £208m in 2017-18 and £444m in 2018-19. Altogether, the alleged boost to the sector would amount to almost £900m.

However, it is expected that many, if not all, organisations will argue this extra money is insufficient to plug the major cash hole in the sector – with even health devo giant Greater Manchester worried that massive care costs will undermine the region’s overall transformation plan.

Joe Anderson, mayor of Liverpool City Region, which recently admitted to a financial dead end, took to Twitter to complain that the government’s response to the social care crisis is “like putting plaster on a patient that needs a triple bypass” – and that letting councils raise tax by 3% rather than the expected 2% is “not the bold radical change” the sector needs.

“Government will say today [that] they are giving more money for social care,” he wrote. “We have £90m cuts, but they will let us raise an extra £1.5m. Not enough!”

Robbing Peter to pay Paul

Similarly, Jo Miller, the new president of Solace and the chief executive of Doncaster council, said that while the fattened precept will provide a short-term relief, “ultimately relying on a regressive taxation system is not a long-term solution to tackling the long-term sustainability challenge our health and social care system faces”.

“Likewise, taking money from the NHB may alleviate short term pressures, but simply robbing Peter to pay Paul will not tackle a systemic funding problem. This needs a long term national solution that does not simply exacerbate existing imbalances,” she continued.

“Our local populations are not well served by a system that forces local authorities to squeeze their budgets to support the 20% in society who are most vulnerable. Local authorities need to be able to plan ahead to deliver growth that works for everyone.”

The LGiU agreed with Miller, noting that the finance settlement highlighted “exactly what is wrong with our over-centralised political system”.

The organisation’s CEO, Jonathan Carr-West, said: “Council tax rises cannot be the answer to the crisis in adult social care funding as many of the councils with the most pressing care needs have the lowest council tax base.

“In the end, this problem cannot be addressed while we continue to treat health and social care as separate systems and to protect the NHS at the expense of social care. After a decade of public debate all we have is a sticking plaster of increased council tax and no long term solution for the greatest public policy question of our age.

“Using local authorities as the whipping boy of the Treasury will only go so far. Radical reform is long overdue and the Treasury should have the NHS in its sights in order to answer this crucial question.”

Cross-party talks needed – including with the PM

Sarah Wollaston, the Conservative chair of the Health Select Committee, agreed that the announcement does not go far enough, instead urging Javid to engage in cross-party talks in order to find a better long-term settlement to the country’s care crisis.

And the GMB, who claimed the current social care funding gap could be as large as £2.6bn, reiterated the prevailing argument that because tax income varies from place to place, Javid’s scheme will lead to a “shocking disparity between rich and poor areas – effectively a social care postcode lottery”.

Its national secretary, Rehana Azam, called on Theresa May to step up to the problem, adding: “GMB has been warning the government for years that council tax is no way to plug the vast social care funding black hole – but they wouldn’t listen.

“Morale is at an all-time low and this half-baked response from government will apply more crushing pressure to their already difficult roles in caring for the elderly and the most vulnerable in society. Now we will all pay the price for this social care post code lottery – today's announcement is a disaster and the PM needs to step up and address this.”

Comments

There are no comments. Why not be the first?

Add your comment

related

public sector executive tv

more videos >

latest public sector news

Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower e... more >
Apprenticeships on the rise across London boroughs

19/08/2020Apprenticeships on the rise across London boroughs

According to recent statistics by London Councils, apprenticeships directly created by London boroughs are up 14% on the previous  year. ... more >
Dorset LEP allocates £2.28m to improve local NHS services

19/08/2020Dorset LEP allocates £2.28m to improve local NHS services

Dorset Local Enterprise Partnership (LEP) is investing £2.28m of the Government’s Local Growth Deal funding into the creation of a ne... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not ... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource... more > more last word articles >
Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower emissions during the lockdown period. The coun... more >
Apprenticeships on the rise across London boroughs

19/08/2020Apprenticeships on the rise across London boroughs

According to recent statistics by London Councils, apprenticeships directly created by London boroughs are up 14% on the previous  year. Between April 2019 and March 2020, London boroug... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PSE were looking at innovative ways to deliver its content to our audien... more >
read more blog posts from 'the raven' >

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues that community-led initiatives are a productive way of helping to solve... more >
Aberdeen's green transport fleet attracting international attention

19/06/2019Aberdeen's green transport fleet attracting international attention

Aberdeen City Council’s hydrogen spokesperson, councillor Philip Bell, highlights the Granite City’s determination to play a leading ... more >
A fifth of public sector workers have never received a thank you from the people they serve

13/06/2019A fifth of public sector workers have never received a thank you from the people they serve

A fifth of the country’s public sector workers say they have NEVER received a ‘thank you’ for doing their job as Public Service... more >

Interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

Public Sector Focus

View all News