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Local Government Finance: Coronavirus

Ministry of Housing, Communities and Local Government written question – answered on 12th May 2020.

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Photo of Angela Eagle Angela Eagle Labour, Wallasey

To ask the Secretary of State for Housing, Communities and Local Government, for what reason the funding allocated to Wirral Council in relation to the covid-19 outbreak was £11,862 million in the first payment and £8,886 million in the second payment.

Photo of Simon Clarke Simon Clarke Minister of State (Housing, Communities and Local Government)

Following the Government’s announcement on 18 March of an initial wave of £1.6 billion of funding to respond to COVID-19 impacts on local councils, we continued to keep funding pressures under review, using both data collection and ongoing conversations with councils to refine our assessment.

On 28 April, the Secretary of State announced allocations of an additional £1.6 billion to individual local authorities.

Whereas the first funding allocation was primarily allocated to local authorities through the Adult Social Care Relative Needs Formula, in recognition that the greatest immediate pressures would fall on local authorities with social care responsibilities, this second wave of funding was allocated on a per capita basis. This reflects our latest understanding of the distribution of additional covid-related pressures, which are likely to be distributed in a way that is different from pre-existing needs.

It is important that these two waves of funding are seen together and that false comparisons between the two are avoided. Across both waves, more than 90 per cent of the funding will go to social care authorities. Wirral Council’s share is £20.7 million.

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