Extra £500 million earmarked to enable councils to provide social care services

The government has announced a £500 million support package to ensure councils can continue to provide social care services.

The support package will primarily see an additional £500 million added to the Social Care Grant to bolster social care budgets, a key concern raised by councils and research.

The Treasury will be providing £500m with further details set out at the upcoming Budget whilst details on the distribution of this funding will be included in the final Local Government Finance Settlement early next month. The government says this funding is to be used to address the pressures facing councils and improve performance and should not be put aside for later use or spent on areas that are not a priority.

Levelling Up Secretary Michael Gove said the government has “listened to councils across England about the pressures they’re facing and have always stood ready to help those in need.”

However, the provisional settlement has been cautiously welcomed by many local government organisations including the Local Government Association (LGA), the County Councils Network and the Association of Directors of Children’s Services (ADCS).

John Pearce, ADCS President, said the additional funding is “very welcome and recognition of the significant financial pressures in local government,” but that a long term solution is required.

“A one-off cash injection, while helpful, does not negate the need for a sufficient long term funding settlement for children; councils will continue to face difficult decisions about vital services that our communities rely on without this.

“ADCS will continue to work with government to ensure sustainability of children’s services and provide the foundation needed to reform the system so we can improve outcomes for children and young people.”

The LGA has warned that councils in England still face a £4 billion funding gap over the next two years. Therefore, while positive extra funding will help ease some of the financial pressures they face in 2024/25, councils will still need to raise council tax and many will need to make cuts to local services in order to plug funding gaps.

“We will continue to work with Government to achieve a sustainable long term funding settlement and updated distribution mechanisms, as well as legislative reform where needed, so that local government can play its full part in delivering inclusive prosperity and growth through investment to support people, places, and the planet,” Cllr Shaun Davies, Chair of the Local Government Association, said.

The British Association of Social Workers (BASW) joined those calling for a long term solution.

“While we appreciate the government's recognition of the challenges councils face, we express our concerns regarding the lack of a long-term funding settlement and the impact of years of austerity cuts on councils' ability to maintain vital adult and children's care services.

Margaret Young and Jackie Mahoney, Co-Chairs of the BASW Adult Social Work Group, said: “While we appreciate the government's efforts to address immediate challenges with this funding package, it is essential to underscore the critical role it plays in maintaining social care services. This funding is instrumental in ensuring that social workers can continue to provide essential support to individuals, promoting their well-being and safeguarding their rights. We want to see targeted efforts to address the challenges in commissioning, recruitment, and retention of staff rather than just the plugging of existing budget deficits."

"While BASW England cautiously welcomes the government's support package, we emphasise the urgency of a sustained commitment to addressing the long-term financial challenges faced by local government. We look forward to continued engagement with the government and the sector to work towards a more comprehensive and sustainable local government finance system."