By Richard Johnstone | 24 October 2014
Councils have urged Chancellor George Osborne to use the Autumn Statement to ensure that sufficient funding is provided to town halls for the implementation of the Care Act.
In its submission to the Treasury ahead of the December 3 statement, the Local Government Association highlighted that implementation of the reforms would place extra costs on councils from next April. As part of the reforms, a new national minimum eligibility threshold is being set at ‘substantial’, while there are also requirements to increase personalisation of provision. Assessments of care needs are also needed ahead of the introduction of a cap on care costs, set at £72,000 from April 2016.
In its submission published today, the LGA said the government’s own risk assessment of the reforms indicated that the costs may be greater than the Department of Health is allowing for.
‘Funding for the Care Act in 2015/16 is not just an issue of quantum but also of distribution,’ its submission stated.
‘The Department of Health will need to ensure that the implications of any distributional approach are transparent and carefully thought through. This is essential for ensuring that not only is the funding sufficient in total, but that it is sufficient for every locality as well.’
The umbrella group of town halls also called on Osborne to pledge to fully fund all new burdens arising from the Care Act. Authority-level allocations must be confirmed soon to ensure the reforms are put ‘on a sustainable footing and meet the high expectations of those in need of social care support’.
This were among nine recommendations made by the LGA, which also called for the introduction of long-term local government finance settlements, including complete local retention of business rate revenue. This should form part of a range of financial freedoms, flexibilities and reforms that would increase the financial sustainability of local authorities, such as greater local control over council tax and the ability to levy new taxes.
