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Ministers consider council tax rise to cover social care funding | Ministers consider council tax rise to cover social care funding |
(35 minutes later) | |
Local authorities could be allowed to make a further increase in council tax to pay for social care. | Local authorities could be allowed to make a further increase in council tax to pay for social care. |
Ministers in England are discussing ways to invest more money into care services for the elderly and disabled. | Ministers in England are discussing ways to invest more money into care services for the elderly and disabled. |
One option is to let them increase council tax beyond the extra 2% for which they already have permission, while another is bringing forward extra money they have been promised in 2019. | |
It comes as fewer people are getting help from local authorities. | It comes as fewer people are getting help from local authorities. |
This includes places in care homes and nursing homes as well as help in the home for daily tasks such as washing and dressing. | |
Councils only fund services for the poorest, with those with assets of more than £23,250 expected to pay the full cost of care themselves. | |
Read more: | Read more: |
Council spending on care has fallen by 9% in real terms over the past five years with local government blaming cuts to their funding from central government. | Council spending on care has fallen by 9% in real terms over the past five years with local government blaming cuts to their funding from central government. |
Services for older people have been particularly badly hit. | Services for older people have been particularly badly hit. |
Regulators have warned these cuts have started adding to pressures in the NHS with A&E units said to be bearing the brunt. | Regulators have warned these cuts have started adding to pressures in the NHS with A&E units said to be bearing the brunt. |
Old and frail patients are being admitted because of the lack of community support, which is also being blamed for the growing number of delayed discharges - cases where patients are ready to leave hospital but cannot. | Old and frail patients are being admitted because of the lack of community support, which is also being blamed for the growing number of delayed discharges - cases where patients are ready to leave hospital but cannot. |
Ahead of last month's Autumn Statement there were suggestions the government would invest more money into social care, but it was not included in Chancellor Philip Hammond's announcements. | Ahead of last month's Autumn Statement there were suggestions the government would invest more money into social care, but it was not included in Chancellor Philip Hammond's announcements. |
However, ahead of the local government financial settlement for 2017-18, which is expected this week, the Treasury is understood to be discussing ways in which funding could be increased. | However, ahead of the local government financial settlement for 2017-18, which is expected this week, the Treasury is understood to be discussing ways in which funding could be increased. |
The prime minister's spokeswoman refused to comment on the speculation, but said an announcement would be made soon. | The prime minister's spokeswoman refused to comment on the speculation, but said an announcement would be made soon. |
One option is to allow councils to increase the 2% precept they applied this year by even more in the coming years. | One option is to allow councils to increase the 2% precept they applied this year by even more in the coming years. |
The second is to use the Better Care Fund. That is a pot of money councils share with the NHS, which is worth £3.9bn this year and is due to increase by £1.5bn in 2019. | The second is to use the Better Care Fund. That is a pot of money councils share with the NHS, which is worth £3.9bn this year and is due to increase by £1.5bn in 2019. |
Many have argued the extra funding should be brought forward. | Many have argued the extra funding should be brought forward. |
Martin Green from Care England, which represents care providers, told BBC Radio 4's Today programme that funding problems in the industry were "reaching a crisis point". | Martin Green from Care England, which represents care providers, told BBC Radio 4's Today programme that funding problems in the industry were "reaching a crisis point". |
"Research shows that about 40% of care services will no longer be viable in the medium term, so this is a huge number of care services that will be lost, some companies will definitely go bankrupt," he said. | "Research shows that about 40% of care services will no longer be viable in the medium term, so this is a huge number of care services that will be lost, some companies will definitely go bankrupt," he said. |
He added that the precept funding model had problems, adding: "In the majority of local authority areas they raised the precept, but there is no clear audit trail to say has all that money reached the front line." | He added that the precept funding model had problems, adding: "In the majority of local authority areas they raised the precept, but there is no clear audit trail to say has all that money reached the front line." |
NHS v social care | NHS v social care |
NHS: Budget controlled by NHS England and pays for hospitals, GPs, district nursing and mental health care. Services are provided free at the point of need. | NHS: Budget controlled by NHS England and pays for hospitals, GPs, district nursing and mental health care. Services are provided free at the point of need. |
Care: Budget controlled by councils and pays for care home and nursing home places as well as support in the home for tasks such as washing and dressing. Services are means-tested so only the poorest get help towards their costs. | Care: Budget controlled by councils and pays for care home and nursing home places as well as support in the home for tasks such as washing and dressing. Services are means-tested so only the poorest get help towards their costs. |
Conservative councillor Izzi Seccombe, of the Local Government Association, said that increasing the precept "would not plug" any funding gap. | Conservative councillor Izzi Seccombe, of the Local Government Association, said that increasing the precept "would not plug" any funding gap. |
She said the £383m raised from a previous 2% precept was eclipsed by larger costs, such as the £600m cost of the national living wage increase. | She said the £383m raised from a previous 2% precept was eclipsed by larger costs, such as the £600m cost of the national living wage increase. |
'Savage cuts' | 'Savage cuts' |
A key problem with the precept system, she added, was variation in the amount of money raised between wealthy and poorer areas, creating a "postcode lottery". | A key problem with the precept system, she added, was variation in the amount of money raised between wealthy and poorer areas, creating a "postcode lottery". |
"We are trying to integrate health with social care and yet the health system is based on national taxation. | "We are trying to integrate health with social care and yet the health system is based on national taxation. |
"We need an injection now of £1.3bn because there is a shortfall by 2020 of £2.6bn." | "We need an injection now of £1.3bn because there is a shortfall by 2020 of £2.6bn." |
Labour's shadow social care minister Barbara Keeley said the crisis has been "caused by savage Tory cuts to the budgets of local councils". | Labour's shadow social care minister Barbara Keeley said the crisis has been "caused by savage Tory cuts to the budgets of local councils". |
"The right solution would be for Theresa May to admit the Tories have got it wrong and deliver the needed funding for social care," she said. | "The right solution would be for Theresa May to admit the Tories have got it wrong and deliver the needed funding for social care," she said. |
"Asking taxpayers and councils to pick up the bill for their failure is no substitute for a proper plan." | "Asking taxpayers and councils to pick up the bill for their failure is no substitute for a proper plan." |
Andrea Sutcliffe, the chief inspector for adult social care, told The Times: "We've got increased demand and potentially a restriction on capacity. | Andrea Sutcliffe, the chief inspector for adult social care, told The Times: "We've got increased demand and potentially a restriction on capacity. |
"Unless we really get to grips with some of these problems... we will get to an absolute crisis." | "Unless we really get to grips with some of these problems... we will get to an absolute crisis." |
What are your experiences of social care? Get in touch and email haveyoursay@bbc.co.uk. | What are your experiences of social care? Get in touch and email haveyoursay@bbc.co.uk. |
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