More money for social care – but why aren’t care companies happy?
The Chancellor revealed his eagerly awaited 2015 spending review yesterday, and having already pledged extra money for frontline NHS services earlier in the week, it appears that NHS funding is to be largely protected.
By contrast, the Social Care sector, which has a separate budget from the NHS and a steadily increasing funding crisis, was not so lucky.
Whilst the existing budget for social care is not set to be cut, the ‘solution’ put forward by George Osborne to deal with the funding crisis, is to raise money through increased council tax.
The Chancellor claims a 2% council tax rise, (which will amount to approx £30 per household), will raise £2 billion and bring the sector back from the brink of crisis.
However, experts have already warned Government that the social care sector faces a £6billion deficit by 2020 – so even if successful, this solution will barely scratch the surface of the problem.
Care providers across the country say the council tax increase will not be enough, and are concerned that by putting this measure in place, the Chancellor is merely passing the problem over to local councils to solve by themselves.
The ‘solution’ also does not take into account the urgent need for a cash injection to counteract a 300% raise in Care Quality Commission fees, and the huge financial impact that the rise in Living Wage will have on care companies.
It means that there will be even more of postcode lottery as to whether the local council in which you live raises enough additional council tax, and arranges its finances wisely enough, for you to be able to access social care funding.
Local councils are warning that huge cuts to their budgets will leave them with no choice but to make swinging cuts to the services they offer - despite being given greater fundraising powers by the Chancellor.
Those councils most in need of providing state funded social care will be able to raise less money from a hike in council taxes. So in the north of the UK for example, there will still be a funding crisis.
While the Chancellor’s measures go some way to relieve the pressures faced by social care, they are not a substitute for sustainable funding.
For many smaller care providers, the Chancellor’s plans do not herald a return from the brink, rather, they are very likely to have to focus on the private market, or go out of business.