Source · Select Committees · Health and Social Care Committee
Recommendation 53
53
Rejected
Paragraph: 185
Increase annual funding for social care by £7 billion by 2023–24.
Recommendation
We reiterate the recommendation made in our ‘Social care: funding and workforce’ report that annual funding for social care should be increased by £7 billion by 2023–24. This will account for demographic changes, uplift staff pay in line with National Minimum Wage and protect people who face catastrophic social care costs.
Government Response Summary
The government rejects the recommendation for a £7 billion annual increase in social care funding by 2023-24, instead committing up to £2.8 billion in 23-24 and £4.7 billion in 24-25, which it states is the largest increase in history.
Paragraph Reference:
185
Government Response
Rejected
HM Government
Rejected
We do not accept the recommendation that the annual funding for social care should be increased by £7 billion by 2023–24. As announced in the Autumn Statement, the Government is making available up to £2.8 billion of additional funding in 23–24 and up to £4.7bn in 24–25 to support adult social care and discharge. This is the largest increase in funding for social care in history and this will put the adult social care system on a stronger financial footing and improve the quality of and access to care. We are still taking forwards our ambitious reform reforms to the social care system. That involves investing in the workforce, better data and technology, and increasing the oversight of the social care system. These will improve access and quality of care, while also building long- term resilience in the sector. The funding announced in the Autumn Statement includes £1 billion of new grant funding in 23- 24 and £1.7 billion in 24/25, as well as £1.3 billion in 23–24 and £1.9 billion in 24–25 which will be distributed to local authorities through the Social Care Grant. The funding announced also includes further flexibility for local authorities on council tax. Local authorities will be able to increase council tax to 3% per year from April 2023, and local authorities with social care responsibilities can increase the ASC precept by up to 2% per year. Our sustained, long-term investment has helped local government steadily increase their spending on adult social care which reached £20.7 billion in 2020/21. This is an average increase of 2.3% per year in real terms since the introduction of the Care Act 2014. Previously, in the Local Government Finance Settlement for 2022/23 we supported local government by making available an additional £3.7 billion of funding for councils for 2022/23, which includes £1bn specifically for social care. DLUHC’s intention is to publish the provisional Local Government Finance Settlement for 2023/24 as soon as is reasonably possible this winter.