Chancellor To Increase Social Care Spending
A “significant real terms funding increase” for local government next year has been promised by chancellor Rachel Reeves in today’s Budget (30 October).
This will include £1.3bn of additional grant funding to deliver essential services, she said, including least £600m in grant funding for social care, with £230m to tackle homelessness and rough sleeping.
In her Budget speech in the House of Commons this afternoon Reeve said:
“To repair our public services, we also need to work alongside our mayors and local leaders. We will deliver a significant real terms funding increase for local government next year including £1.3 billion of additional grant funding to deliver essential services, with at least £600 million in grant funding for social care.”
Jody O’Neill – CEO & Co-founder, Curam:
“While the Chancellor’s allocation of £600 million to support local authorities with social care is welcome, it feels like a duct-tape solution to a much bigger, systemic problem. The cracks in the social care system run deep, yet the government continues to shy away from a desperately needed reform.”
Since Labour took office, there’s been a glaring lack of focus on the UK’s failing social care system. The system is crying out for an overhaul, but we’re yet to see real transformative action.
One move that would provide immediate relief to families across the UK is the introduction of tax-deductible care costs. Only the very poorest members of society receive support on social care payments at present and the prospect of a spending cap has been taken off the table. Many families are struggling to provide essential care due to the sheer cost. Meanwhile, countries such as the USA and Germany have more advanced systems that remove tax burdens and make care more accessible.
Tax deductible care costs are as pragmatic as they are compassionate. By making quality care more financially accessible, we boost the overall wellbeing of the nation. Affordable at-home care shortens hospital stays and reduces unnecessary admissions which reduces strain on the NHS, something that is quite rightly a top priority according to the government.
Without meaningful measures that improve social care provision, talk of reforming the NHS remains empty words. We need to move on from patchwork solutions and invest in a healthier society.
Carers Trust CEO, Kirsty McHugh, said:
“Today’s Budget provides some hope for unpaid carers. A rise in the Carer’s Allowance earnings limit is a welcome step that will help tens of thousands of people to balance work and caring. However, it remains the lowest benefit of its kind with complex eligibility criteria that just don’t work for carers. We hope the changes announced today and the Government’s review of Carer’s Allowance overpayments will be the first steps towards a desperately needed overhaul of this totally inadequate benefit.”
“The renewal of the Household Support Fund will also be a relief for tens of thousands of carers living in poverty who need financial help. However, it is concerning that we have yet to see meaningful action taken on social care or any details of the Government’s plans. The system is broken, piling pressure on carers while the local carer organisations who support them are struggling to meet demand.”
“The hike to employer National Insurance contributions will see the operating costs of those carer organisations soar while local government remains squeezed, driving some to the brink. The Government has to recognise the value of these services to carers, those they care for and the wider health and care system. These crucial services must be properly funded before it’s too late.”
Sam Monaghan, Chief Executive said:
“Following the chancellor’s announcement of the budget I would like to take the opportunity to reiterate the importance of long-term stability for social care. We welcome the increase in core local government spending power and new grant funding to support social care – these increases must be passed on to providers at a fair price for care.
“The announcement on the employer’s national insurance hike creates added pressure for the non- profit sector in a currently fragile operating environment, and we would like to see further support for not-for-profits providing social care to offset this additional burden.
“The investment intended to tackle the NHS crisis is commendable. But the government itself has acknowledged how interwoven the health system is with social care, aiming to fix one part of the system without significant investment in the other does not make sense.
“We need to see movement on the Government’s long-term plan for social care, with the financial support to drive it forward.”
…………….more to follow
