Money makes the world go round: Unexpected £500m to be given to social care

Following last-ditch pleas for ministers to ease funding pressures on councils, Michael Gove announced a further £500m will be given to social care for the 2024-25 financial year.

Yesterday, Levelling Up secretary, Michael Gove, unveiled that the government will be providing extra funds to help struggling councils across England. Overall, an additional £600m will be distributed, with £500m earmarked for social care as a result of mounting pressures on children’s care placement costs.

However, although the announcement is positive news, it has been deemed as unexpected. In December 2023 the government hailed it’s provisional settlement as a good deal for councils. The original deal involved an increase of almost £3.9bn in authorities’ spending power, a 6.5% cash rise worth 4.7% in real terms.  

Against this backdrop, council leaders called the plan inadequate particularly because of the 9.8% rise in the national living wage (NLW) in April. The Local Government Association estimated that the first financial plan would add £1.6bn to adult social care costs, because of the need to fund commissioned providers to pay staff the NLW.

Following this, 46 MPs wrote to Prime Minister Rishi Sunak urging for extra funding to be found, in a campaign led by the County Councils Network and the counties all party parliamentary group.

Commenting on the news, Sam Monaghan, chief executive of MHA, said: ‘With thousands of people waiting for care services, it is critical that the £600m in additional funding which the Government is providing to local authorities reaches adult social care services as soon as possible.

‘This short-term injection of cash for the sector will provide a good news headline for Government ahead of an anticipated General Election later this year. However, what the sector desperately needs is more sustainable and long-term solutions.’

‘This funding won’t help care providers to resolve the continued pressures they are facing, which include eye-wateringly high utility bills and a workforce crisis,’ Sam said. ‘To meet the care needs of the population – both now and in the future – while providing greater certainty to the sector, the government must show it is committed to long-term funding. The Spring Budget offers it a great opportunity to put these firmer plans in place.’

Image: nattanan23

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