- New £1.4 billion fund to help local authorities offer a
fairer cost of care to providers
- More than £1 billion for local authorities to support social
care
- £300 million extra for workforce recruitment and retention
Care providers, residents and staff will all benefit from
additional funding to support the social care sector.
A total of £1.4 billion will be made available over three years
to help increase the fee rates local authorities pay to care
providers.
Further funding of more than £1 billion will be available for
local authorities in 2022/23 to fund social care. This will help
councils respond effectively to rising demand and cost pressures.
This is on top of the £300 million announced last week for
workforce recruitment and retention - taking the total to £462.5
million.
Health and Social Care Secretary said:
“It is vital we continue to do all we can to protect social care
during the pandemic and it is more important than ever the sector
takes advantage of its priority booster status since the
emergence of the Omicron variant.
“At the same time we need to plan for the longer term - and this
money and the details confirmed will help do that.”
Many local authorities pay care providers less than the cost to
deliver the care. This results in higher fees for self-funders
and a lack of investment. This needs to be addressed to make
social care more accessible and payments fairer - which is one of
the pillars the ten year vision for adult social care reform -
People at the Heart of Care - is based on.
This £1.4 billion will help local authorities to support a fairer
cost of care.
It is part of the £5.4 billion Health and Social Care Levy which
will also, through charging reform, protect people from
unpredictable care costs and move to a position where people who
fund their own care to access the same fee rates for care in care
homes that local authorities pay.
The transformed social care charging system, which includes a
significant increase in state support, will apply to people in
both residential and at-home care and will set daily living costs
at a lower rate than originally proposed, helping people save
more money. It will mean nobody is forced to sell their home in
their lifetime.
Together with the money from the local government finance
settlement this will sustain and develop the care sector in
communities across England with overall local government core
spending power increasing by four per cent.
Minister for Care said:
“The measures announced in the past six months,
and those to come on integration early next year, will mean
transformational change for social care.
“Not only are we tackling the immediate challenge of COVID-19 but
the longer term need to reform adult social care.
“This is the start of the journey but one we will take alongside
caregivers, providers, local authorities and those receiving
care.”
The workforce survey, published today, has also shown what was
already known, staff shortages and the pandemic have combined to
leave the social care sector struggling in spite of the
incredible efforts by staff.
This is why last week it was announced care workers will benefit
from a £300 million extension, in addition to the £162.5 million announced
in October, to support recruitment and retention. It can be
used to pay for bonuses and bring forward planned pay rises for
care staff, fund overtime and staff banks increasing workforce
numbers up until the end of March. Grant conditions are being
published today.
This is on top of the £500 million for workforce training,
qualifications and wellbeing announced as part of the levy.
This is all part of the wider plans to improve social care and
fulfil the ten year vision set out in the adult social care
reform white paper - ‘People at the Heart of Care’. Further
details on integration will follow early next year.
NOTES TO EDITORS
- The Local Government Finance Settlement (LGFS) makes
available an additional £3.5 billion to councils, an
increase in local authority funding for 2022/23 of
over 4% in real terms. This will ensure councils across the
country have the resources they need to deliver key
services.
- The LGFS confirmed local authorities can make use of over £1
billion of additional resource specifically for social care in
2022/23. This includes the increase in the social care grant and
the improved Better Care Fund, a one per cent adult social care
precept and deferred council tax flexibilities from the previous
years.
- Council’s will also receive a grant worth £822
million, as part of the £3.5 billion, to spend as they see
fit to meet general local needs including social care.
- The LGFS confirmed local authorities can make use of over £1
billion of additional resource specifically for social care in
2022/23. This includes the increase in the social care grant and
the improved Better Care Fund, a one per cent adult social care
precept, and deferred funds from the previous year.
- The £1.4 billion Market Sustainability and Fair Cost of Care
fund is over three years and part of the £5.4 billion Health and
Social Care Levy.
- The workforce survey was completed between September and
October.
