A report has revealed that Nottinghamshire County Council could face a funding gap of over £30m to implement the government’s new adult social care reforms.
It estimated that in the worst-case scenario the additional costs of implementing the reforms could be £41.47m. This is significantly higher than the estimated £8.82m of government funding the council will receive to cover the costs.
The report by Cllr Matt Barney, cabinet member for adult social care and public health, said a “significant shortfall [of funding] is anticipated”.
The report predicted the additional costs will be a result of the government’s fair price for care changes, which is part of the 10-year vision for adult social care reform that will be implemented in October 2023.
Based on an analysis by the UK Care Home Association, the suggested hourly rate for care services should be £23.20, which is a pay uplift of between 17.5% and 19%. The report said this could lead to an hourly rate increase of £5 for care commissioned by the council.
Barney said: “These reforms present a significant challenge to local authorities across the country. We have a difficult road ahead, not just financially, but also because we need to recruit more adult social care staff at a time of national shortage.”
This comes as another analysis by Newton and the County Council Network estimated that for the East Midlands an additional 221 social work staff and 45 financial assessors will be required to carry out Care Act assessments, reviews and care management.
“We have expressed our concerns to the government and will continue to lobby ministers for funding and support to deliver these reforms,” Barney added.
The report is to be presented to the county council’s cabinet on 14 July.
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