Social care likely to be hit by cuts across most councils next year, finds survey

LGA reports that 44% of councils responsible for social care are expecting to seek emergency government bailout over next two years to stave of 'bankruptcy'

Photo: ducdao/Fotolia
Photo: ducdao/Fotolia

Social care services are likely to be badly affected by cuts across most English councils next year, a Local Government Association (LGA) has found.

Almost four in five authorities (79%) said services for disabled or older adults were very or fairly likely to be negatively affected by savings in 2025-26, while 63% said the same about provision for children, young people and families.

The LGA also found that over four and ten councils responsible for social care were expecting to seek a bailout from the government over the next two years to stave off having to issue a notice of ‘bankruptcy’. One in nine such councils were granted this support earlier this year.

The survey was carried out from 23 September to 11 October 2024, with 103 out of the 153 councils with social care responsibility responding.

Much-anticipated Budget

Its results come a week before the government’s Budget, on 30 October, which will set public spending limits for 2025-26 as well as announcing further cuts to 2024-25 budgets.

The government has signalled that the Budget will be tough because of the need to both tackle what it alleges is a £22bn “black hole” in the public finances left by its Conservative predecessor and enable necessary improvements to services, such as the NHS.

While much of this is likely to be covered by tax rises, chancellor Rachel Reeves has also asked cabinet ministers to put forward proposals for cuts to services under their responsibility, which likely includes local government.

‘Funding gaps set to affect most vulnerable’

“The unprecedented emergency support given to councils this year reveals the extraordinary funding emergency facing local government,” said LGA chair Louise Gittins. “As our survey shows, many more councils are being pushed into a precarious financial position.

“This is not just about numbers on a spreadsheet. Budget cuts needed to plug growing funding gaps will affect the most vulnerable members of society and the services our communities rely on every day.

“The Autumn Budget must provide councils with the financial stability they need to protect the services our communities rely on every day.”

Bailouts to stave off bankruptcy

Earlier this year, the government announced that 17 councils with social care responsibility would receive so-called “exceptional financial support” (EFS), enabling them to use borrowing or the sale of their assets to fund day-to-day expenditure, something that is usually prohibited.

The LGA found that 44% of councils responsible for social care were very or fairly likely to apply for EFS in 2025-26 or 2026-27 to avoid having to issue a section 114 notice.

Such a notice means that the council has judged that it is unable to meet its legal responsibility to balance its budget. It is typically the prelude to substantial cuts and council tax rises.

Five councils with social care responsibility – Birmingham, Croydon, Nottingham, Slough and Thurrock – have issued a section 114 notice since 2021.

,

8 Responses to Social care likely to be hit by cuts across most councils next year, finds survey

  1. Anonymous October 23, 2024 at 6:28 am #

    I’m surprised it’s on 44%

    • Catherine Wain October 23, 2024 at 11:21 pm #

      Social doesn’t exist now! I am Bipolar and suffer from a Neurological disease. I am in a vacuumed of support. Was really suicidal as a result of my symptoms. In non suitable private rental accommodation, very bright and cannot advocate for myself anymore. To be honest. With no support I just want to die.

  2. Delia October 23, 2024 at 6:37 pm #

    As a carer for nearly 25 years the responsibility expected to be delivered to the most vulnerable people in our society, is very under funded,long hours, 0 hour contracts & minimum wage paid for a highly skilled job
    It’s about time we were paid the money we deserve for the responsibility
    The owners of these companies are multi millionaires while front line snuggle to make a leaving

    • Frankie October 23, 2024 at 9:42 pm #

      I absolutely agree with every word you’ve written.
      As a carer of 13 years and 10 of those caring for a child with significant complex medical needs, physical and cognitive impairment; it’s shocking to see that the government thinks it’s right for these children to suffer any consequences of their mismanagement ( They all co sign off on things no matter who’s in power).

      Furthermore, the stress and anxiety carers will face meeting the high demands of the LA and any IFA they are associated all the while having to work with even less is despicable.
      The children get less services annd funding and as a result of this the so called “professional fee” is next to nothing.

    • Kirsty October 23, 2024 at 9:45 pm #

      100% agree with you. I was a carer for years and the working conditions and pay was disgraceful. The only thing that kept me going was my clients and how they appreciated the help and support they were given and their needs always cdme first. They should never privatised the care sector. These private companies are just out to make a profit and there is very little caring on their part.

  3. Robert Poloha October 23, 2024 at 9:30 pm #

    Fully agree. The rich get richer and the sick are slyfully helped to die as soon as possible with the hope they will get rid of as many as possible before ponsion age., This foul government can’t take responsibility for supporting the sick and disabled because they know thus country has an aging population and want to help kill us off ASAP. That’s why they are so desperate to change the wording on the rules. Sad, but true.

    • Anythingbuttruth October 24, 2024 at 12:30 am #

      So many elderly died in the COVID for years so where did their pensions go?

  4. robin hood October 24, 2024 at 9:09 am #

    Why do UK love millionaires and billionaires so much?
    The taxes are so much high, I MEAN SO HIGH, that you’re literally killing people from inside.

    And ASDA BILLIONAIRE BROTHERS PAID 35 million in taxes in 5 years? While they earned what, 20 billion?

    The point is, till when is this government going to protect the ruch and tax the poor. IT TIME FOR THIS SAYING TO COME TRUE: RISE AND RISE AGAIN, UNTIL LAMBS BECOME LION.

    STOP CHRONIC CAPITALISM. THIS IS ACTUALLY CHOKING AND SUFFOCATING.