Lancashire County Council expects extra £11m from nationwide council funding increase aimed at social care

Local authorities across the country are to get a share of a £600m support package to help them deliver key aspects of their work - £500m of which will be directed towards adult and children’s social care departments.

The extra cash has been promised amid growing calls for financial assistance for councils, whose already stretched budgets have been hit by the spike in inflation over the last 12 months and increasing demand for services.

While Lancashire County Council said in its recent medium-term financial strategy that it is “in a relatively good position compared to some other councils”, its adult social care service is - like those across the country - under perennially increasing pressure.

Over the next three years, support for vulnerable adults is expected to place £38m worth of additional demand on County Hall’s budget and require £110m to cover price inflation and cost changes.

Speaking to the LDRS after the announcement of the one-off government funding increase, the county council’s deputy leader and cabinet member for finance said that it was much-needed, but not a panacea.

"We very much welcome the extra funding from government around social care cost pressures,” County Cllr Alan Vincent said.

“The precise amount we get will probably not be clear until the final local government settlement is confirmed in early February. Working on the basis that they allocate it using the Adult Social Care Relative Needs formula, which we expect it will be, then it should be circa £11m.

“That is very much an estimate and it is intended to cover some of the cost pressures in adult and children's social care, but it won't cover all of them and will require us to carry on our work to improve our efficiency across the council and to drive down costs. It should also be noted that the extra money is for next year, not this one."

The County Councils Network (CCN) has also welcomed the extra cash after revealing that 70 percent of its members’ £650m overspend this year derived from adult and children's services alone.

The CCN previously said that county councils faced a £4bn deficit over the next three years and were left in "a significantly worse position" as a result of an increase in the National Living Wage, which councils will have to pay for.

In thanking the government for listening to lobbying by the organisation, CCN chairman Cllr Tim Oliver warned that difficult decisions still lay ahead.

“Whilst this extra funding will undoubtedly help us protect valued frontline services, councils, of course, still face difficult decisions when setting their budgets for 2024/25. Service reductions will still be necessary for councils in some areas to balance their books, while the majority of councils will still have little choice but to propose maximum council tax rises.

“Looking further ahead, reform of local government finance and the way in which we are expected to provide services is imperative. Councils require a long-term financial settlement to enable us to plan for, and meet, the demand from our growing elderly populations and the more complex needs of residents requiring social care. This must be coupled with a comprehensive reform programme to bring in line the funding envelope available to enable us to deliver effectively our statutory responsibilities.”

Meanwhile, local government minister Simon Hoare said of the council cash boost: “This injection of funding will help ensure services which people rely on can continue – and demonstrates how important we view local government. We have listened to various organisations and considered their views seriously and I’m grateful to those who reached out to me.

“The funding offers something for all of our hard-working councils, with additional funding for social care as well as help for rural authorities to deliver essential services.”