public health and social care

23.02.16

Social care is 'at breaking point' despite new council tax precept

Financial pressures on councils such as the national living wage are leaving social care “at breaking point” despite the government’s new council tax precept, the Local Government Association (LGA) has warned.

Analysis by the LGA shows that 143 of England’s 152 social care authorities are considering or have approved introducing the 2% council tax precept by 2016-17, raising a total of £372m. However, almost all this money could be spent on additional costs such as increasing home and residential care providers’ wages in line with the new national living wage, which the LGA estimates will cost at least £330m.

The LGA is calling on the government to help relieve the pressures by bringing forward £700m of funding from the Better Care Fund from the end of the Parliament to 2016-17 in the forthcoming budget.

Cllr Nick Forbes, LGA vice chair, said: “The government expects local authorities to raise council tax by nearly 4% next year, including a 2% precept to pay for under pressure social care services. With no council tax freeze grant next year, a government funding settlement that assumes council tax increases and growing funding pressures, many councils feel they have no choice left but to put up council tax.

“After years of striving to keep council tax as low as possible or frozen, town halls find themselves having no choice but to ask residents to pay more council tax over the next few years to offset some of the spiralling costs of social care in 2016-17. At the same time, they are warning communities that despite council tax rising, the quality and quantity of services on offer could drop, as the income will not be enough to offset the full impact of further funding reductions next year and with the national living wage bringing a significant further cost pressure from April.

“Councils will continue to do all they can to maintain the services that older and vulnerable people rely on but services supporting the elderly and disabled are at breaking point. It cannot be left to council taxpayers alone to try and fix them.”

A fifth of public employers have said they will have to cut jobs to accommodate the living wage. The Better Care Fund itself has been heavily criticised, with councils wanting to quit after it was redesigned in 2014 to direct more funding towards the NHS.

Vicky McDermott, chair of the Care and Support Alliance, which represents more than 75 national charities including Age UK, Care England and Scope, said: “Councils have been placed into a difficult position affecting people’s lives. For many people in the social care system, they will only see their lives get worse, not better. In order to alleviate a degree of suffering, the government should bring forward the money earmarked to the Better Care Fund in the Budget.   

 “The government continues to ask local councils to achieve the impossible while they ration central government funds for adult social care.

“What we are now seeing is that the overwhelming majority of local councils have accepted that doing nothing is not an option. With the Government refusing to invest the additional monies into the Better Care Fund until 2017-18, councils have quickly recognised that the only new money available to them to pay for social care costs is through the introduction of the precept.”

Ray James, president of the Association of Directors of Adult Social Services, said councils are working hard to protect the quantity and quality of services for older and disabled people, but directors of adult social services are clear: “many services are at great risk over the next two years due to increasing demand, the welcome announcement of the national living wage and the need to find further savings”.   

James added: “While by no means a complete solution, bringing forward the new funding currently planned for the end of this Parliament would go some way to alleviating this immediate pressure.”

James warned after the last Spending Review that the extra government funding would not be enough to meet the increased costs of social care.

Last week, PSE reported that a new Local Government Information Unit survey revealed that councils are warning they will have to cut frontline services, dip into reserves and increase charges despite the government’s promise of greater financial control.

 

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