Source · Select Committees · Public Accounts Committee
Recommendation 20
20
When we pressed witnesses about the fragile state of adult social care services and continuing...
Conclusion
When we pressed witnesses about the fragile state of adult social care services and continuing demographic pressure, the Department agreed the demographic pressures from both working-age and older people are quite significant but listed three sources of funding to sustain “business-as-usual social care”. These were rises in council tax (including the adult social care precept), growth in business rates, and a portion of the £1.6 billion of 68 Qq 8 and 38; C&AG’s Report, page 4 69 Qq 66, 88; C&AG’s Report, page 4 70 Qq 66, 88; C&AG Report, page 4 71 HM Treasury, Autumn budget and Spending Review 2021, 27 October 2021 72 Q 91; C&AG’s Report, page 4 73 Q 8 74 Qq, 56, 57 75 Qq 9 and 10 76 Q 88 77 Q 10 78 Qq 67–68 79 Qq 8, 84–85, 101 Local Government Finance System: Overview and Challenges 17 new grant in each year announced at the spending review.80 We have previously discussed the significant uncertainty over the impact that the pandemic will have on business rates over the long term.81 The real-terms contribution of council tax over the spending review period is presently unclear as the future level of inflation is very uncertain.82 When we asked how they could be confident that additional funding would be sufficient to ensure both adult and children’s social care did not put more pressure on other services, the Department could not tell us how much of the additional grant funding would go toward meeting pressures in social care as this had not yet been determined by the government.83
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 The department recognises the pressures on local services and the importance of a sustainable funding platform. To support services, the 2021 Spending Review settlement provides local authorities with an estimated average annual increase in Core Spending Power of 3% in real terms each year of the Spending Review period, including investment in Adult Social Care reform. By 2024-25 it is expected to rise to around £59 billion. Local government can also expect to receive additional income from 2024-25 from the Extended Producer Responsibility scheme, for managing packaging waste. This funding package ensures local services can respond effectively to rising demand and cost pressures, including adult social care reform. 5.3 The department continues to work closely with the local government sector and other government departments to ensure that councils have the resources to meet pressures and maintain current service levels. Alongside monitoring local authority finances, the department engages regularly with local authorities and other government departments to understand and assess policy outcomes. This includes working closely with the Department for Health and Social Care on plans to deliver a significant package of Adult Social Care reforms, as well as the Department for Education on the upcoming SEND Review and Independent Care Review. The department is working at pace to bring together the qualitative and quantitative information from this work to regularly assess any emerging pressures on the sector, particularly in the context of the war in Ukraine. 5.4 The department wrote to the Committee in April alongside this Treasury Minute with more detailed assurance of the impact of the Spending Review on services and its plans to work with other government departments to keep this under review.