Clouds lift a little for social care, by Sarah Pickup

21 Oct 10
The CSR announcements yesterday contained some better than expected news for adult social care departments

The CSR announcements yesterday contained some better than expected news for adult social care departments up and down the country - and, of course, for the people they are there to support.

The protection of Department of Health grant funding which goes to councils, and the new money targeted at adult social care, will go some way to offset the 28% reductions in general government and other specific grants that go to local authorities.

The separate announcement on the purpose of providing these additional resources, albeit that they are not ringfenced, should be in the minds of councillors as they consider where to target service reductions. We can assume that the government will not now expect to see headlines about councils making big cuts to adult social care.

So it’s better than expected.... But with adult social care budget being such a large proportion of local authority budgets, the need to maximise efficiency and transform services is not diminished. Perhaps £2bn, if it all reaches local authorities (50% of this is to come via the NHS), will cover the pressure of demographic change, the rising numbers and levels of need among older people and people with disabilities.

But that will still mean there is a significant reduction to find. In effect, adult care's share of the savings that will be needed as formula grant declines by 28%.

The protection of DH funding to councils and the lesser reduction of 12% in supporting people funding is clearly good news for the sector. However, we understand that these grants, currently in area-based grant with historic distribution mechanisms, will move into formula grant. If this is the case there is likely to be a major re-distribution of resources with consequent winners and losers.

So, as ever, the devil will be in the detail  and the announcement in no way means the sector can relax in the pursuit of transformation and efficiency. Much, also, will depend on the way in which individual councils respond to the overall funding situation they face. We probably shall not have a true picture of all the consequences until the government publishes its revenue support allocation later this autumn.

So, even though the black clouds which hung over us until 20 October have turned to a lighter shade of grey we would still be well-advised to cling firmly to our umbrellas!

Sarah Pickup is honorary secretary of the Association of Directors of Adult Social Services

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