William Eichler 07 March 2025

CCN: Splitting up social care could cost £500m a year

CCN: Splitting up social care could cost £500m a year image
Image: LALAKA / Shutterstock.com.

The annual cost of splitting up social care services into multiple smaller councils could exceed half a billion pounds, according to new research by the County Councils' Network (CCN).

CCN calculated that establishing 58 new councils based on a minimum population of 300,000 would cost £850m over five years and deliver no savings due to the cost of splitting up social care services.

Drawing on data from PwC, CCN estimated the annual recurring cost of disaggregating social care services could reach over £500m, while the ‘one-off’ transition costs would cost over £660m.

CCN chairman Cllr Tim Oliver warned that establishing new unitaries with a 300,000 footprint would ‘create hundreds of millions of new unsustainable costs, piling further strain on already under pressure care services.’

The network’s research found that replacing all 21 two-tier areas with single unitary councils would deliver a net-saving of £2.9bn over five years.

Cllr Oliver added: ‘It is absolutely essential that the Government now stick to the statutory criteria they have set out, treating the 500,000 as a minimum not an optimum population scale. This will ensure we create new councils with the scale and capacity to deliver substantial savings to be reinvested in frontline services to the benefit of local taxpayers.’

In response, Cllr Sam Chapman-Allen, chair of the District Councils’ Network, criticised plans to create ‘mega councils’ and expressed scepticism of the predicted savings.

‘If such large councils are so efficient then why are so many of them warning of financial difficulties? Savings promised by past reorganisation have often failed to materialise – unlike the costs of such a major upheaval which have been fully apparent.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Digital, Data and Technology

Tower Hamlets London Borough Council
£139,000 per annum
Shape the future of a digitally enabled borough Tower Hamlets, London (Greater)
Recuriter: Tower Hamlets London Borough Council

Director of Adult Social Care Commissioning

Tower Hamlets London Borough Council
£130,000 per annum
Transforming outcomes through integrated commissioning Tower Hamlets, London (Greater)
Recuriter: Tower Hamlets London Borough Council

Director of Adult Social Care

Tower Hamlets London Borough Council
£145,000 per annum
Leading innovative, strengths-based social care that enables residents to live fulfilling and independent lives Tower Hamlets, London (Greater)
Recuriter: Tower Hamlets London Borough Council

Director of People & Organisational Development

Sussex & Brighton Strategic Authority
Up to £120,000 per annum
Design the people foundations of a new organisation before they become someone else’s legacy. Hybrid, working across Sussex. Relocation support available
Recuriter: Sussex & Brighton Strategic Authority

Director of Law, Governance & Compliance (Monitoring Officer)

Sussex & Brighton Strategic Authority
c£120,000
Design how a new strategic authority governs itself, then lead it into its first mayoral term. Hybrid, working across Sussex. Relocation support available
Recuriter: Sussex & Brighton Strategic Authority
Linkedin Banner