Funding threat for London's social services

In an announcement due before the end of the year, the London boroughs will find out whether the government will fully implement a radical social services funding formula that slashes several regions funding share without providing funding protection. This new funding approach severely underestimates need in urban areas, and without grant protection, councils in the capital could lose almost £420 million from their social services funding.

This comes at a time of increasing demand for social care services, which has already forced 80 per cent of London councils to restrict their care to only adults with substantial or critical needs.

New analysis by London Councils shows that the revised formula contains regional biases, which skew too much funding to areas like Yorkshire and Humberside and the North East.  Without funding protection the formula would give many councils more money than they actually spend on social care services. Hull would receive 36 per cent more than it spends, Doncaster would receive 32 per cent more, Sunderland would receive 28 per cent more and Barnsley would receive 27 per cent more.

Conversely, Harrow, which is already receiving less money that it spends and has been forced to restrict services to people with critical needs, would lose a further 14 per cent of its current funding share. This would reduce its government grant to just 54 per cent of what it currently spends.

Regional biases also mean that Yorkshire and Humberside would receive government funding for 99 per cent of the amount it spends each year on younger adults' social care.  But London would receive funding for just 68 per cent of its expenditure.

London Councils chairman, councillor Merrick Cockell, stressed that: “If the Government bows down to pressure and applies the raw funding formula without funding protection, it could have serious long-term implications for the future provision of social services for vulnerable adults throughout the capital.”