By Vivienne Russell | 9 January 2013
London councils will face an adult social care funding black hole of more than £900m in the next five years, according to an analysis published today.
A report prepared by London Councils, with support from Ernst & Young, found that the capital’s boroughs currently spend £2.8bn or a third of their total budgets on adult social care. However, this is set to rise as the number of Londoners aged 65 and over is estimated to increase by 50,000 between now and 2017/18.
More efficient approaches by councils, such as closer collaboration with the NHS and improved procurement, could save between £240m and £735m, the report found, but this wouldn’t be enough to eliminate the funding gap.
Assuming a 5% cut in local government spending at the next Spending Review and maximum savings, councils in London would have a social care funding deficit of £907m. This would rise to £1.1bn with 15% spending cuts.
This calculation also assumes that the recommendations of the Dilnot Commission on Funding of Care and Support are not implemented. If its central proposal, to cap an individual’s care costs, were introduced, and deeper cuts imposed, councils’ deficit could be £1.5bn, the report said.
It added that by 2020, more than 60% of all local authority funding could be taken up by councils’ two primary statutory responsibilities – social care and waste collection.
Ravi Govindia, executive member for adult services at London Councils, said all Londoners should have access to affordable care.
‘The report is an urgent call to action for government and councils alike,’ he added.
‘We need a concerted effort to ensure that boroughs are able to continue to fund both their statutory responsibilities and the range of other services they provide.’
Govindia added that the government should decide quickly how to implement the Dilnot recommendations and amend data protection regulations so that social workers and NHS staff can share information about clients more easily.
London councils will face an adult social care funding black hole of more than £900m in the next five years, according to an analysis published today.
A report prepared by London Councils, with support from Ernst & Young, found that the capital’s boroughs currently spend £2.8bn or a third of their total budgets on adult social care. However, this is set to rise as the number of Londoners aged 65 and over is estimated to increase by 50,000 between now and 2017/18.
More efficient approaches by councils, such as closer collaboration with the NHS and improved procurement, could save between £240m and £735m, the report found, but this wouldn’t be enough to eliminate the funding gap.
Assuming a 5% cut in local government spending at the next Spending Review and maximum savings, councils in London would have a social care funding deficit of £907m. This would rise to £1.1bn with 15% spending cuts.
This calculation also assumes that the recommendations of the Dilnot Commission on Funding of Care and Support are not implemented. If its central proposal, to cap an individual’s care costs, were introduced, and deeper cuts imposed, councils’ deficit could be £1.5bn, the report said.
It added that by 2020, more than 60% of all local authority funding could be taken up by councils’ two primary statutory responsibilities – social care and waste collection.
Ravi Govindia, executive member for adult services at London Councils, said all Londoners should have access to affordable care.
‘The report is an urgent call to action for government and councils alike,’ he added.
‘We need a concerted effort to ensure that boroughs are able to continue to fund both their statutory responsibilities and the range of other services they provide.’
Govindia added that the government should decide quickly how to implement the Dilnot recommendations and amend data protection regulations so that social workers and NHS staff can share information about clients more easily.
