Council tax rises will not plug ‘chronically underfunded’ social care, LGA leaders warn

Adult social services will face a £1 billion funding gap despite council tax rises, the Local Government Association (LGA) has warned.

Extra money raised by local authorities will “do little” to stop a decline in standards and the availability of care in England, council leaders said.

Their warning comes as a report by Independent Age suggests the quality of care homes has dropped in one in three local authorities in England.

Local authorities are able to raise council tax by up to 2.99% in 2019/2020, and by a further 2% if they provide social care.

However, councils cannot exceed an increase of 6% in the social care levy over the three-year period from 2017/18.

The LGA said 44% of around 150 social care councils are not able to implement the additional 2% rise as a result.

It estimates that if all councils raised council tax to the maximum level they could, adult social care services would still face a funding gap of at least £1 billion next year to maintain current standards.

This figure could rise to £3.6 billion by 2025, the association said.

Councillor Richard Watts, chairman of the LGA’s resources board, said: “Raising council tax has never been the answer to fixing our chronically underfunded social care system.

“It has raised different amounts of money in different parts of the country, unrelated to need, and risked adding an extra financial burden on households.

“Investing in social care is the best way to keep people out of hospital and living independent, dignified lives at home and in the community.

“This is not only good for our loved ones but is proven to alleviate pressure on the NHS.

“Plugging the immediate funding gap facing adult social care and finding a genuine long-term funding solution must therefore be an urgent priority for the Government.”

Meanwhile, analysis of Care Quality Commission inspection data from January 2019 and January 2018 shows the quality of care homes has worsened in more than a third of local authorities (37%).

The drop in performance is steeper than between 2017 and 2018, when it fell by 22%, Independent Age said.

In Manchester, 44% of care homes were rated “inadequate” or “requires improvement”, meaning they are failing to deliver the minimum quality of care expected, in January.

George McNamara, director of policy and influencing at the charity, said the findings were “truly alarming”.

“Years of dithering by the Government, and the failure to reform the social care system, is a main cause of increased pressures on the care home market and more areas with poor performers,” he said.

“Unless the forthcoming green paper is bold and ambitious, it will do little to address the crisis in care.”

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