Councils could face a budget black hole this year amid growing concerns about underfunded adult social care reforms, the LGA has warned.
Of the £36 billion the new UK-wide health and social care levy will raise over the next three years, only £5.4 billion is ringfenced for social care in England.
As councils plan their service budgets from April, the LGA said many are increasingly concerned that the funding allocated for reforms falls far short of the likely costs involved.
The introduction of a ‘fair rate of care’ that councils will pay providers and tackling the issue of self-funders paying more for their care than those who access support at the council rate will be particular issues going forward.
Without adequate funding to deliver these proposals, some councils will face a battle to balance budgets, worsening existing pressures and impacting on services.
Even if the reforms were fully funded, adult social care would still face a funding gap for current services, because of inflation and other rising costs.
Cllr David Fothergill, Chair of the LGA’s Community Wellbeing Board, said: “There is much to support in the Government’s vision and proposals, but they run the risk of falling at the first hurdle if they are not matched by the necessary funding to turn them into reality.
“As well as potentially derailing the reforms themselves, inadequate funding also runs the risk of further destabilising existing services, with clear consequences for the ability of people who draw on social care to live the lives they want to lead.
“It’s crucial the Government recognises this, steps up and works with us.
“Unless action is taken, people may experience reductions in quality and availability of care and support services, while at the same time paying more for them through the new health and social care levy and increased council tax.”
Councils also face a standstill on funding for public health, with the 2022/23 funding settlement providing an extension of their current funding of £3.4 billion – but no real terms increase.
Cllr Fothergill said the settlement was “disappointing” and “runs contrary to our shared ambition with government to address the stark health inequalities exposed by COVID-19”.
