Government funding of £1.4bn to help councils pay 'fair cost' for social care is 'nowhere near enough'

Care leaders from the National Care Forum (NCF) and the Independent Care Group (ICG) are concerned the government’s £1.4bn to help local authorities move towards a fair cost of care is “nowhere near enough” to make the social care market financially sustainable.

The paper published by the government shows how it will provide £1.4bn over the next three years to support local authorities to prepare markets for reform and move towards paying providers a fair cost of care. Of this, £162m will be allocated in 2022-23 with a further £600m made available in both 2023-24 and 2024-25.

These proposals are being funded by the new Health and Care Levy announced in September, of which £5.4bn is being invested in adult social care over the next three years.

However, the NCF is concerned the estimates to address the shortfall in care funding have arrived at a “figure closer to £7bn a year” and say the funding required to achieve this must be “urgently reviewed.”

Vic Rayner, chief executive of the NCF said: “This statement contain[s] some alarm bells. Given we are only at the start of this journey in determining the fair price for care, it is hard to understand how the DHSC has already stipulated an estimate of £600m funding for each of the following two years to address the unfair cross subsidy issue and move to a realistic fully funded fair price for care.

“More detail is also needed on how the DHSC views the likely progress of individuals in their ability to exercise their requests under section 18.3 of the Care Act. The ambition to enable more people who fund their own care to ask their local authority to arrange care on their behalf to secure better value rests, fundamentally, on local authorities’ ability to pay a fair price for that care. Failure to do so will result in huge market instability and the closure of many services as they become financially unsustainable.

“Local authorities must take the opportunity to work collaboratively with their social care providers to reset the dial on the fees they pay and reach an honest and mutual agreement about a fully funded fair price for care that delivers high quality and accessible care for all who need it.”

’If you don’t fund social care properly, it will fail’

The ICG say local authorities are “not getting enough funding to commission care,” so it is vital both sides address the issue.

ICG chair, Mike Padgham said: “Sadly, what the government is proposing to inject into social care is nowhere near enough to address the issues.

“Here we have in black and white a clear admission that care is not being properly funded on the front line.

“Local authorities will themselves argue that they are not getting enough funding to commission care, so it is vital both sides address the issue.

“Social care has been chronically under-funded for a generation and the rigours of Covid-19 has left it on its knees, struggling to provide care for our oldest and most vulnerable in care and nursing homes and in their own homes.”

“Financial cutback after financial cutback has left the provision of care in tatters.

“If you don’t fund social care properly, it will fail and today we have yet more evidence to prove that.”

To read the full report, go to https://www.gov.uk/government/publications/market-sustainability-and-fair-cost-of-care-fund-2022-to-2023/market-sustainability-and-fair-cost-of-care-fund-purpose-and-conditions-2022-to-2023