The Local Government Funding Settlement for 2025/26 has been announced. It will not cover what's needed in Social Care
The Government announced it's Local Government Funding Settlement today. GIven the already announced increases in Employers National Insurance Contributions and the National Minimum Wage, todays announcement has been greatly anticipated across the care sector and local government. Unfortunately it has fallen well short of what is required for the sector to flourish.
Amongst the various figures announced today, £880m has been allocated to local authorities as additional funding for social care.
This is an increase on the previously announced £680m but falls far short of the additional £2b that the Local Government Association (LGA) had said was needed as a minimum to cover the increased costs.
This is in stark contrast to the £25b that has been promised for the NHS. The Government is happy to throw money at the NHS (and I'm not suggesting it doesn't need it) but it does not seem to grasp that without the care sector the NHS will ultimately fail. The two are inextricably linked but it does feel that the DHSC would be better off reverting to it's previous name as it seems more representative
We know those in local government commissioning were just as concerned as we were about this announcement and whether it would be adequate. We now know it was not, and will add increased pressure on stretched local authority budgets and force already struggling care providers to think seriously as to whether now is the time to throw in the towel.
The government supposedly has high aspirations on supporting the care sector and developing a national care service. The sector is at a tipping point, and without more investment now, those aspirations will never happen.
Keiron Broadbent
Chief Executive Officer
West Midlands Care Association
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