Social Services: Finance

Treasury written question – answered on 1st November 2021.

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Photo of Rachael Maskell Rachael Maskell Shadow Minister (Digital, Culture, Media and Sport)

To ask the Chancellor of the Exchequer, what steps he has taken through his Autumn Budget and Spending Review 2021 to help local authorities support those in the social care system.

Photo of Simon Clarke Simon Clarke The Chief Secretary to the Treasury

At the Spending Review it was announced that Government is providing Local Government with £4.8bn of new grant over three years to meet core pressures in social care and other services. In addition to this, if local authorities were to use the full flexibility that we have assumed for the purposes of the Spending Review settlement, they are expected to have access to up to £1.7bn of additional funding over the Spending Review period for adult social care through the ability to increase the adult social care precept by up to 1% each year.

In September the Prime Minister announced the package of reforms to adult social care – funded through the Health and Social Care Levy – which committed the Government to investing an additional £5.4bn in adult social care over the next three years. The Spending Review confirmed that £3.6bn of the £5.4bn will be available for local government to implement comprehensive funding reform of the adult social care system. This funding will also enable local authorities to better sustain their local care markets by moving towards a fairer cost of care.

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