Council tax rises 'will not fix social care funding crisis'

clock • 2 min read

Council tax rises to pay for social care in 2016/17 will not alleviate growing pressures on the services caring for the elderly and disabled, the Local Government Association (LGA) has warned.

The LGA said nine in 10 councils in England are considering or have approved plans to raise £372 million for underfunded social care services in 2016/17 by using new powers to increase council tax by 2%.

All councils can raise council tax next year to fund local services without the need for a referendum - most district councils can increase by £5 at Band D level.

Councils have called for greater flexibility in setting council tax. As a result, the Government announced as part of the Spending Review that England's 152 social care councils - responsible for caring for the elderly and vulnerable - can increase council tax by up to a further 2% (up to 3.99 per cent in total) in 2016/17.

Income from this extra source must be spent on social care services.

After years of funding pressures, many councils - including those who have frozen council tax for years - say they are unable to turn down the chance to raise desperately-needed money for social care next year.

The LGA found that 143 of these 152 social care authorities are considering or have approved introducing the extra social care precept in 2016/17 - this would raise £372 million to pay for social care services.

England's 152 social care councils will receive £2.5 billion less core Revenue Support Grant from central government to run local services in 2016/17.

The LGA said that the majority of this extra £372 million income might cover the cost to councils of introducing the Government's National Living Wage from April.

The LGA has estimated it would cost England's 152 social care authorities at least £330 million to cover increased costs to home care and residential care providers in 2016/17 as a result.

Council leaders are therefore calling for the chancellor to use his Budget next month to bring forward the £700 million of new funding earmarked for social care through the Better Care Fund by the end of the decade to 2016/17.

Cllr Nick Forbes, LGA Vice Chair, said: "Vital social care services will increasingly be unable to help ease the growing pressure on the NHS and the threat of a care home crisis is still very real.

"That is why, at the very least, the planned £700 million of new funding from the Better Care Fund should be brought forward to 2016/17 in order to help alleviate growing social care pressures."

Further reading 

Protection must make itself heard in the FCA's ageing customers review

Two-thirds of advisers see clients 'concerned' about care costs

 

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