Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Deferred
Multi-year funding settlement for adult social care remains uncertain for local government.
Conclusion
We challenged the Department on whether we were ever going to see a multi-year funding settlement for local government and if the extra money for adult social care in 2023–24 and 2024–25 would continue into future years. Both the Department and DLUHC acknowledged the benefits of multi-year funding but also the potential downsides if circumstances are volatile, such as high inflation. The Department told us that this would be a matter for the next spending review, of which the timing was not yet known, and decisions government takes, but that the Department would cope with whether it was a multi-year settlement or a one-year rollover.37 37 Qq 86–91 Reforming adult social care in England 15 2 Delivering adult social care reforms Planning for long-term workforce needs
Government Response Summary
The government agrees and recognizes the value of multi-year funding, noting the 2021 Spending Review provided three years of funding. However, it defers the decision on future multi-year settlements for adult social care, committing to work with relevant departments to ensure the next spending review delivers a sustainable funding package.
Government Response
Deferred
HM Government
Deferred
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The department is making good progress towards the 10-year vision for adult social care set out in the People at the Heart of Care white paper. The department is learning from the first phase of reform, to inform plans for the next spending review period and beyond. The department is also monitoring the impact of the additional funding provided in this spending review period, with a total of up to £8.6 billion made available across two financial years. This is alongside reforms to local government accountability and data transparency, that will shed further light on local performance, all of which will inform the department’s spending review preparations. 3.3 The department recognises the value of providing longer term certainty of funding to local authorities. The 2021 Spending Review set out funding for local government for three years, providing the same level of certainty as for government departments. The government will always seek to provide as much certainty as possible for local authorities when providing funding for delivering services, whilst maintaining flexibility to respond to unexpected pressures. 3.4 The department will work with HM Treasury and the Department for Levelling Up, Housing and Communities to make sure the next spending review delivers a sustainable funding package for Adult Social Care.