Latest Public Sector News

12.02.14

Care reform could leave London in £17m funding shortfall

London is facing a £17m shortfall in funding for social care services, London Councils has warned.

The councils will need £90m to prepare for the new system of care being brought in from April 2015, including additional care user assessments, setting up and managing care accounts, providing information and advice, and handling deferred payments.

London is likely to receive £72m funding in 2015/16, leaving each borough with a potential £500,000 shortfall. Local authorities will fund social care once eligible users have reached their lifetime contribution limit.

Cllr Ravi Govindia, executive member for adult services at London Councils, said: “These reforms represent the greatest change in the way adult social care is delivered for decades.

“In London, where care users are more likely to reach the contribution limit for their care earlier than in other parts of the country, the proposed changes will have a huge impact.

“Boroughs will need to have adequately trained staff and proper systems in place to meet the huge expected demand.

“Yet our figures indicate they are likely to get much less money than they need from central government to cover the costs of preparing for these changes, which will put an even greater strain on existing budgets and potentially leave other services at risk.”

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