Source · Select Committees · Education Committee
Recommendation 56
56
Acknowledged
Paragraph: 134
Local authorities must tackle the imbalance between the 48% reduction in early intervention spending, and...
Conclusion
Local authorities must tackle the imbalance between the 48% reduction in early intervention spending, and the 34% rise in spending on costlier downstream interventions over the last decade. Local authorities cannot simply achieve this by reshuffling spending priorities and reducing essential support for children at the crisis end. The independent review of social care recommends increasing the overall funding envelope for early family help through a £2 billion one-off injection of cash over five years. This one-off injection has clear cost-benefit implications—it could ensure better overall value for the taxpayer by reducing spending in the longer-term, and could ensure greater numbers of vulnerable children are not subject to preventable harms.
Government Response Summary
The government acknowledges the imbalance between early intervention and downstream spending and reiterates existing investments in local services and vulnerable families. They state that local councils are best placed to decide how to spend their available funding.
Paragraph Reference:
134
Government Response
Acknowledged
HM Government
Acknowledged
133. Government has invested billions into local services. Local authority spending on children’s services in 2020–21 was around £11bn, funded through local authorities’ core settlement (which is around £51bn per year,). 134. In April 2022, we announced a £1 billion package to support vulnerable families, including funding for Family Hubs, the department’s flagship Supporting Families programme, and investment in the Holiday, Activity, and Food programme. Local authorities also have access to a one-off Services Grant which is worth over £800 million that can be used for all services, including children’s social care. Further, for 2022–23, we have invested £1.5 million in the Early Intervention Foundation to promote evidence- based approaches which improve services for vulnerable children. 135. Whilst we agree that spend on children’s services should be rebalanced towards preventative early help services, we believe that councils are best placed to decide how to spend their available funding–local councils understand the needs of their communities best, and it is important they have the freedom and flexibility to manage their funding. 136. We are now carefully assessing the recommendations of the care review with all relevant government departments, including HM Treasury and the Department for Levelling Up, Housing and Communities. As we agree the broad shape of the reform programme, we will also need to consider any cost implications. This includes consideration of the review’s recommendation to introduce a new funding formula for children’s and young people’s services.