The pressures which exist in properly funding Adult Social Care given the ever increasing ageing population are hardly ever out of the news headlines. Most recently the Chancellor’s autumn statement and the lack of reference to this issue stimulated debate. There then followed on the 15th December 2016 the Communities and Local Government Secretaries statement allegedly increasing funding for the sector.
As previously blogged the increased funding has two constituent parts, being:-
- The withholding and withdrawal from 2018 – 19 of the new homes bonus payable to local authorities as a reward for ambitious house building plans. This bonus when payable can presently be used by local authorities for spending how they would like. The intention is to scale back these payments and release the saved funds for adult social care. The point is that this is not new money, it is instead existing money being switched from one budget, namely housing to another budget.
- The increasing in the social care council tax precept from 2% to 3% for the next two financial years. In addition councils can raise council tax by 1.99% without having to have a local referendum.
Secretary of State Sajid Javid estimated that the measures would make almost £900 million of additional funding available to adult social care over the next two years. The money is of course required now and if evenly applied (assuming the figures are correct) would give local authorities an extra £450 million for each of the next two years.
The facts that seem to presently apply are that 147 of the 151 councils will take up the new social care precept facility. Not all are considering raising the tax by 3%. It is understood that most will also increase council tax by 1.99%. If this prediction comes to pass it is again estimated that this will raise £543 million. That said it is predicted that it will cost £600 million just to implement the increased minimum wage, with this increase having most impact in the lowly paid care sector.
The predicted facts clearly suggest that the increased funding boost is not entirely new money that the money will not be available immediately and much is already spent on anticipated wage rises in the care sector.
It is fairly safe to predict that the crisis and funding gap in social care will continue and will result in local government cuts in other services. Solutions or at least part solutions have been described in previous blogs. Clearly the only solution is more money, but how is the question. A grown up cross party political discussion does need to be started which in turn needs to involve interested stakeholders and the population generally. We all have a natural interest in this subject given that we are all affected either directly as individuals or collaterally as individuals using the system for the benefit of others.
Clearly there is a long way to go and a lot of media coverage before this issue is resolved, if ever!!
No matter the shambles it is still vital that the existing system is understood. It is the need to understand what the system can and cannot provide, combined with the need to be persistent and to get advice early that is key.
The above is an overview only.
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Andrew Douglas
Partner |
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