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

Residential Support Workers - Development Programme

Durham County Council
£26,403 - £28,598 per annum. Pay award pending.
Residential Support Workers – Temporary 12 Month development opportunity Salary
Recuriter: Durham County Council

Team Leaders

Durham County Council
Grade 8 £32,597 - £36,363 (pay award pending)
Team Leaders – Opportunities are available across the County Durham Area   Salary
Recuriter: Durham County Council

Residential Workers

Durham County Council
Grade 7 £30,024 - £33,699. Pay award pending.
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council

Service Design Lead

Durham County Council
£40,777 to £45,091 p.a. (Grade 11) Pay award pending
We are looking for an experienced and confident Service Design Lead to play a key role in shaping the future of customer services within Durham County Durham
Recuriter: Durham County Council

2 x Health Care and Education Assistants

Durham County Council
£24,796- £25,185 (Pro Rata)
Temporary Contract until August 2027, with the potential to extend, subject to funding. Part Time- 34 hours per week (8.40am to 4pm Mon-Fri) Term Time Spennymoor
Recuriter: Durham County Council
Linkedin Banner