Latest Public Sector News

22.09.16

Council finance settlement will not address social care concerns, counties warn

Social care services for county councils are facing widespread funding shortages despite new settlements from the government, according to the County Councils Network (CCN).

The CCN’s response to the Communities and Local Government Committee inquiry into social care said that funding in the 2015 Spending Review and the local government finance settlement is not enough to meet social care demands in the counties.

Counties have received on average 44% less funding for every resident than the national average, despite having a higher proportion of elderly residents.

Over-65s make up 20% of counties’ populations and this amount is due to rise by 2% a year. The rural geography of counties also means that they cover more challenging and mixed areas.

However, the CCN’s submission argued that new methods of social care funding will benefit county councils the least.

If the 2% social care precept was applied in every county council in 2017-18, it would raise an average of £79.58 for every over-65, compared to £110.69 for metropolitan councils and £95.32 for unitary authorities.

The funding through the precept is also largely being absorbed by the cost of the National Living Wage and the increasing rate of Deprivation of Liberty Safeguard assessments.

The Social Care Relative Needs Formula was frozen in 2013-14, further affecting the funding counties receive to meet their social care needs.

The CCN also argued that the distribution of the Revenue Support Grant does not properly reflect the needs of counties, and that this unfairness could be embedded in compensation given to councils after that will lose out after they receive full control of business rates.

Business has varied significantly among counties in recent years, with some experiencing a high rate of growth and some experiencing sharp decline. For all but three CCN authorities, the growth in business rates income as a result of devolution is predicted to be less than the growth in social care demand. The CCN has previously said that redesigning the business rates proposals is “critical.”

The report also warned that a ‘two-tier’ social care market is developing, with residents who can afford it increasingly seeking private care, thus locking councils out of the market.

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here.

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News

comment

Driving forward a healthier Scotland

10/11/2017Driving forward a healthier Scotland

Dundee City Council is leading the way in boosting electric vehicle (EV) up... more >
A smarter approach to digital transformation

10/11/2017A smarter approach to digital transformation

Catherine Bright, Smarter Digital Services (SDS) manager, explains how a pa... more >

interviews

‘The HSCN is the realisation of industry best practice’

30/06/2017‘The HSCN is the realisation of industry best practice’

Keith Smith, public sector business development manager at Virgin Media Bus... more >

the raven's daily blog

City-centric, deeply disappointing and a nightmare – criticisms pile against the Budget

22/11/2017City-centric, deeply disappointing and a nightmare – criticisms pile against the Budget

It’s been a busy day in the PSE office. Philip Hammond’s Autumn Budget included a number of interesting announcements, ranging from new devolution deals and housin... more >
read more blog posts from 'the raven' >

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 be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >