New social care funding plans announced

The government has announced a package of reforms it says will generate nearly £900m extra for adult social care services over the next two years.

Communities and local government secretary Sajid Javid said a £240m ‘adult social care support grant’ will be introduced next year to be divided by local authorities based on need. Councils will also be handed more flexibility in how they use the social care precept so that they can bring forward more funding in 2017-18 and 2018-19.

Councils were previously allowed to raise council tax by up to 2% per year under the precept. However, from next year local authorities will be allowed to use the social care precept to raise council tax bills by 3% in 2017-18 and a further 3% 2018-19.

The government claims the precept reforms will allow councils to raise £208m more for adult social care in 2017-18 and £440m in 2018-19. The adult social care support grant will be funded through savings generated by reforms to the government’s ‘new homes bonus’ that currently goes to councils, said Javid.