Stark warnings in social care funding analysis
The likely impact of the Government’s planned fair funding review could see Telford and Wrekin’s adult social care funding share for adults aged below 65 fall by over 11% from April next year which could potentially mean a further cut of up to £2.5 million a year in funding from Government for adult social care.
This could mean further cuts to other Council services or a further council tax increase equivalent to 3.7%.
The North East of the country would also see its share fall by around 11% whilst London and the South East regions would both see their shares increase by over 12%.
That’s the warning in statistics produced by the Local Government Association (LGA) and comes as the Council plans to increase council tax by 3.99%. All of this increase would go towards social care.
The LGA analysis shows that the Government may give reduced weighting to more deprived areas such as Telford and Wrekin and potentially switch resources to more rural and well off areas.
This would see neighbouring Shropshire fare better under a revised funding system than Telford & Wrekin. For example, its share of funding for adults up to age 65 would increase by 1.9% while Telford & Wrekin’s would be cut by 11.6%.
The review is due to come into force in April 2021, but the Government has yet to consult councils on its plans or to publish any information to help councils to make longer term plans.
Cllr Lee Carter, cabinet member for finance said; “The LGA’s research is deeply worrying for councils like us who are already having to greatly increasing funding for social care after years of continuous cuts.
“The LGA have modelled just one aspect of the new system which includes many other changes. There has been a dearth of information from the Government on the details and impacts of these new proposals which were due to come in to effect from April 2020 but have only recently slipped to April 2021.
“Yet at the same time the Government seems intent on pulling the rug from under us and our residents.
“If this funding review goes ahead, the impacts on us would be great and could be an extra £2.5 million a year cut to our funding from Government for social care. Spending on social care for adults and children accounts for two thirds of every £1 we spend.
“I will be urging our two MPs to work together with us and push the case for fair funding for the borough and proper funding for social care that reflects our needs rather than shifting resources away to more affluent areas of the country.”