Social care funding will need to increase by 3.9% a year to meet the needs of an ageing population and more disabled people, according to a report by the Institute for Fiscal Studies. It suggested that the funding of adult social care could be centralised and allocated across the country according to an assessed level of need.
However, it said: “This would not be painless, and would raise a number of new challenges — not least for the government’s devolution agenda.”
The IFS said that current council discretion over spending levels means that there is considerable variation in social care spending between different areas.
The report said: “Moving from this to a national funding arrangement with national standards, would be complicated, with a whole host of other issues that would require careful consideration.”
Responding to the report, Izzi Seccombe, chairman of the Local Government Association’s community wellbeing board, said: “This report lays bare the scale of the additional funding that is required to sustain care and health services over the next decade.”
She said that current funding levels were “putting at risk” the care provision for an increasing number of people and that without more money more providers would either withdraw from the market or go bust.
Seccombe added this could lead to a shortfall in provision leading to increased demands on the NHS.
Reports
Most read in
- IFRS 9 override extended to 2029 for existing investments(47 views)
- After EFS: Worcestershire s151 Phil Rook on the uncertain road to financial resilience(33 views)
- Richard Harbord: section 114 was never meant for today’s crisis(31 views)
- Yes Minister: Treasury ‘confident’ LGPS pool’s FCA authorisations can be achieved by March 2026(23 views)
- New: LGPS regional investment special report(21 views)
- Westminster borrows £235m over 42 years to acquire temporary accommodation – an ‘innovative’ solution or should government do more?(19 views)
- The rise of the senior LGPS officer: how will the new role impact funds?(17 views)
- ‘Golden opportunity to turn ship around’ must not be squandered in Spending Review, say London boroughs(17 views)
- Room151 LGPS podcast: investing in venture capital climate solutions(16 views)
- The government’s push to merge pools lacks transparency(15 views)
More from
£330m overspend on homelessness budgets pushing London boroughs ‘to bankruptcy’
London boroughs are quickly moving “towards bankruptcy” because of the “worsening homelessness emergency”, new analysis has found.
(Cllr Grace Williams)