Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Accepted
Spending shifts from preventative to late intervention services, increasing later costs and worsening outcomes.
Conclusion
MHCLG recognises the importance of investing in prevention but also the challenge of funding it when finances are constrained.34 Preventative services help stop, delay or reduce the need for statutory services and can help to deliver better outcomes.35 Over the period 2015–16 to 2023–24, local authorities have spent more on some later intervention services and less on 26 C&AG’s Report, para 1.12 27 Q 97 28 Qq 43, 97 29 Q 46 30 Qq 46, 97 31 Committee of Public Accounts, The Asylum Transformation Programme, Seventy-Sixth Report of Session 2022–23, HC 1334, 27 October 2023 32 Q 96 33 Q 95 34 C&AG’s Report, para 14 35 C&AG’s Report, para 2.5 13 early intervention or preventative services. For example, spending on the public health grant, used to fund preventative services such as alcohol and drug and children’s health services, fell in real terms by £846 million (21%).36 Local authority spending on late intervention services for children and young people (such as a looking after a child, safeguarding or youth justice services), rose from £8.5 billion to £12.1 billion, whilst spending on early interventions (such as family support) fell from £3.2 billion to £2.8 billion.37 MHCLG told us that at the same time as decreases in spend on children’s social care prevention, more children are entering the care system. Written evidence we received from Hampshire County Council stated that it spends around £26 million a year looking after 37 of the most vulnerable children in its care.38
Government Response Summary
The government affirms its commitment to prevention-focused public sector reform, stating the recommendation is implemented and detailing significant investments already made or committed through the 2025 Spending Review, including over £500 million for children's social care, £842 million annually for the Crisis and Resilience Fund, and £100 million for early homelessness interventions.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 As outlined in HM Treasury’s Permanent Secretary’s letter to the Committee on 7 August 2025, the government’s approach to public sector reform is informed by a focus on prevention. This will improve outcomes for communities as well as reducing reliance on expensive crisis management. The government is therefore committed to supporting local government to invest in prevention by resetting the government’s relationship with the sector and investing in prevention-focused reform in key service areas. 3.3 As set out at Spending Review 2025, the government is providing targeted investment in prevention-focused reforms in specific service areas. This includes: • Children’s social care: investing over £500 million from the Transformation Fund over the Spending Review 2025 period to help more children stay with their families. • Crisis and Resilience Fund: providing £842 million a year in the first ever multi-year settlement to transform the Household Support Fund into a new Crisis and Resilience Fund. • Homelessness: providing £39 billion for a new Affordable Homes Programme and £100 million for early interventions to prevent homelessness and £950 million of capital investment for a fourth round of the Local Authority Housing Fund. • Community help partnerships: investing £100 million alongside other spending across government to provide a step-change in the government’s support for adults with complex needs. 3.4 The government recognises the importance of preventative services in contributing to the financial sustainability of local authorities while improving outcomes for vulnerable people. As noted in the response to recommendation 2, the government is also committed to reducing ringfences and the micromanagement of grants. 3.5 The government will set out further detail on its approach at the provisional Local Government Finance Settlement.