William Eichler 06 March 2019

Council tax rises will not fix ‘chronically underfunded’ care system

Council tax increases will fail to fix the ‘chronically underfunded’ social care system, local authority leaders have warned.

All councils are able to raise council tax by up to 2.99% in 2019/20 to fund local services without the need for a referendum. Some are also able to levy an extra social care precept of up to 2% on top of this.

Research from the Local Government Association has found that 83 of England’s social care authorities are considering or have approved an adult social care precept in 2019/20 with 38 using the full 2% precept.

The adult social care precept rises will raise an extra £197m in total to pay for adult social care services this year which, the LGA calculates, would not even cover the £290m cost of paying for the increase in the National Living Wage.

The LGA has estimated that even if all councils used their council tax flexibilities to the maximum allowed, adult social care services would still face a funding gap of at least £1bn in 2019/20, just to maintain existing standards of care. This figure will rise to £3.6bn by 2025.

‘Extra council tax income for adult social care has been helpful in recent years. For many that option has run out this year and the extra money the rest will raise will do little to prevent those who rely on services seeing the quality and quantity reduce,’ said Cllr Richard Watts, chair of the LGA’s Resources Board.

‘Raising council tax has never been the answer to fixing our chronically underfunded social care system. It has raised different amounts of money in different parts of the country, unrelated to need, and risked adding an extra financial burden on households.’

According to the Chartered Institute of Public Finance and Accountancy (CIPFA), council tax bills are set to rise by 4.5% in England from April—the second highest increase in the last decade.

SIGN UP
For your free daily news bulletin
Highways jobs

Service Manager, Children in Care

Gloucestershire County Council
£60,532 - £63,895 per annum
This is a pivotal role, created to provide dedicated leadership and advocacy for children in care Gloucestershire
Recuriter: Gloucestershire County Council

Family Support Worker

Gloucestershire County Council
£30,024 - £32,597 per annum
Gloucestershire County Council are currently recruiting for a Family Support Worker to join our Family Link Plus team Gloucestershire
Recuriter: Gloucestershire County Council

UgoBus Driver - Harlow

Essex County Council
Up to £25959.0000 per annum
UgoBus Driver - HarlowPermanent, Part Time£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Gym Instructor

North Yorkshire Council
£26,847 to £28,153 pro rata, per annum
As a Gym Instructor, you’ll be at the heart of creating a positive and safe gym experience for all customers. Knaresborough, North Yorkshire
Recuriter: North Yorkshire Council

Leisure Attendant

North Yorkshire Council
£25,620 - £25,989 pro rata
You will also undertake regular cleaning requirements and building safety checks. Pateley Bridge, Harrogate
Recuriter: North Yorkshire Council
Linkedin Banner