Recommendation 11

HM Government · verbatim extract Deferred

21. Reform and prevention are critical if we are to turn around the cycle of system failure and cost escalation. This Government is reforming services, including children’s social care, homelessness and rough sleeping, special educational needs and disabilities (SEND), and adult social care services. 22. At the 2025 Spending Review, the Government announced an ambitious programme of public service reform, focused on prevention to improve outcomes for local residents. Specifically, the Spending Review: • Made available £2 billion over the next three-years for children’s social care reform. This includes over £500 million in new investment to build on the delivery of key reforms. • Allows for an increase of over £4 billion for adult social care in 2028–29 compared to 2025–26. • Protects the record level of investment (£1 billion in 2025–26) to tackle homelessness and rough sleeping for the next three years and provides £100 million, including from the Transformation Fund, to fund increased homelessness prevention activity. • Increased funding for schools by over £4.7 billion per year by 2028–29, compared to the 2025–26 core schools budget published at Spring Statement 2025. Accounting for the funding recently announced for pay, the core schools budget will increase by £4.2 billion by 2028–29. 23. Alongside this investment, we are resetting the relationship between central and local government through simplified funding arrangements, supported by clear outcomes. The simplification of grant funding will be supported by a shift towards outcomes-based accountability for local authorities. We will set out and measure progress on the key services and outcomes we want to work with local government to deliver for local people and places. 24. The Government is committed to transforming adult social care and making tangible improvements in the short-term. The government has introduced legislation to establish the first-ever Fair Pay Agreement for adult social care professionals to ensure care workers are fairly rewarded for the work they do. The Fair Pay Agreement aims to resolve the recruitment and retention crisis in the profession, alleviating pressures on public services in the longer term. The government remains committed to wider reform of the adult social care system and to build a National Care Service. The Government will consider recommendations from Phase 1 of the independent commission into adult social care, led by Baroness Casey, when she reports in 2026.