22 February 2002
Spending on social care services will exceed 2001/02 budgets by £198m – 69% of which will be on children's services, according to a report by the Local Government Association and the Association of Directors of Social Services.
The research concluded that a key factor in the funding gap was a rise in the number of children being cared for by local authorities.
It said: 'Immediate action in 2002/03 is needed in relation to the funding deficit in children's services, most especially recognition of the true cost of placements for children looked after and investment in the development of foster care.'
Rising accommodation and staff costs also added to the care crisis, with authorities being forced to raise council tax or reallocate money from other services.
LGA chair Sir Jeremy Beecham said that £400m was needed in the next financial year to tackle funding problems in children's and older people services, followed by £700m in 2004/05 and £1bn in 2005/06 simply to stop the shortfall growing.
Beecham said: 'The pressures on social care are formidable. It's essential to get social services and social care expenditure on to a new plateau so that there can be more confidence in the provision of these very important services.
'We're delighted that the government is increasing investment in the National Health Service but they won't make the most of that investment unless there is comparable investment in social care, because the services complement each other.
'It's a grim picture that has to be addressed in the Spending Review.'
ADSS's Rob Hutchinson, the chair of the children and families committee, told Public Finance that the number of children in council care going through the courts had increased by 27% in the past three years.
Hutchinson, director of social services at Portsmouth City Council, said: 'If extra money does not arrive there will continue to be terrific problems. Funds intended for older services and adult services are being used to bail out children's services as it is.'
PFfeb2002
