LGA calls for five-year social care settlement

2 Jun 14
A five-year funding settlement for adult social care is needed to avoid a crisis in provision across the country, councils have warned.

By Richard Johnstone | 3 June 2014

A five-year funding settlement for adult social care is needed to avoid a crisis in provision across the country, councils have warned.

Social care costs

The Local Government Association called on the government to set out its long-term funding commitment, as councils responsible for social care face spending 40% of their budgets on the service by 2020. Ministers also need to sanction an extension of spending integration plans with the NHS through the Better Care Fund.

According to the LGA, councils and the NHS in local areas have already agreed to pool £5.4bn in local Better Care Fund plans from next April, 40% more than the £3.8bn required by the Department of Health. The plans, which are intended to join up health and social care spending, will be introduced from April 2015 and are currently being agreed by town halls and local NHS bodies.

However, they have not been formalised beyond 2015/16, and LGA chair Sir Merrick Cockell said ministers must ensure the funding that makes up the single pot was in place for a five-year period. This would allow both councils and the NHS to plan ahead, he said.

In addition, a separate transformation fund was also needed to ease the initial impact of the reforms, such as the risk that funding pooled by hospitals would not be matched by an immediate reduction in costs.

‘Evidence has shown that integrating health and social care means people will receive better care at home and a reduced need for hospital beds,’ Cockell stated.

‘The Better Care Fund is a good start, but it would be short-sighted to expect it to solve the problems of the health and social care system overnight.

‘Health and social care partners have shown their confidence in joining up their funding by putting in additional money over and above what was required by the Department of Health, but despite this there has still not been any indication that funding will be extended beyond this first year.’

In a joint statement, the Department of Health and the Department for Communities and Local Government stated that no area of public spending had been given a spending settlement beyond 2015/16.

A spokeswoman said: ‘We welcome the LGA’s commitment to joint working. We have already been clear that pooled budgets are likely to be an enduring part of the health and care system, with ministers on the record saying that areas should plan on the basis that this is more than a one-year programme. 

‘Decisions on future funding will be made at the next spending review in the normal way, but in the meantime, the Better Care Fund is already kickstarting the process of joining up health and social care across the country and areas have a big job to do in making this work from next April.

‘Successive government have talked about integration for decades, but the Better Care Fund is the first serious step towards making this a reality and transforming the lives of people who use health and care services.’

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