02 March 2007
Local authorities are offsetting low council tax rises with increases in the fees they charge for care services ranging from 13% to 100%, Public Finance has learnt.
The most stark example is Northumberland County Council, which is committed to a council tax increase of just 1.8%, but is planning to increase its weekly rate for care in a resident's own home by 33%, its meals-on-wheels service by 25% and travel to and from care services by 100%.
Executive council member Tony Reid said the hikes were 'fair' as they would 'only be payable by people who have substantial savings or pensions' and therefore failed a means test.
The London Borough of Camden will have no increase in council tax in 2007/08 but will increase its weekly charge for home care by 13.6%. That follows a local consultation in which a majority of respondents said they agreed that 'those who can afford to pay for care should pay', council papers report.
Milton Keynes is also planning a below-average tax increase of 3.6%, but on February 27 the council approved an 8% increase in home care and a 5% increase in Learning Disability Transport services.
Gordon Lishman, director general of Age Concern, told Public Finance: 'If the price of local authority care rises sharply, older people may choose to buy services from the private sector at a lower price. This might put people at risk, as there is no external monitoring.'
It is not just councils proposing tax increases below the average 4.2% that are increasing fees hugely, however. In Nottinghamshire, councillors have agreed a 4% increase in council tax and a rise of 34% in the weekly fee for home care.
Similarly, Blackburn with Darwen has proposed a 4.6% tax increase but is consulting on a 40% increase in its meals-on-wheels charges and has proposed to raise the eligibility criteria for social care from 'moderate' to 'substantial' needs.
Council executive member Frank Connor said: '[There is] unprecedented demand for social care. If we are to live within our means as a council… we have to prioritise our spending.'
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