Provisional Local Government Finance Settlement*
Last week, the Ministry of Housing, Communities and Local Government (MHCLG) announced the provisional settlement for the 2025 – 2026 year.A consultation has been launched on the measures it contains, which closes on 15th January 2025.
The local government finance settlement is the annual determination of funding to local government. It needs to be approved by the House of Commons.
This collection covers the provisional local government finance settlement for 2025 to 2026 and includes a consultation on the proposals. Following the conclusion of this consultation, the final settlement for 2025 to 2026 will be published and laid before the House of Commons in early 2025.
On 18 December, the government also launched a consultation to seek views on updating how local authorities are funded through the local government finance settlement from 2026-27 onwards.
* The full Provisional local government finance settlement: England, 2025 to 2026 can be read here
The National Care Forum (NCF) has responded these new announcements
The National Care Forum (NCF) – the leading association for not-for-profit social care has responded to the announcements made today by the Department of Housing, Communities and Local Government on the publication of the Local Government Finance Settlement.
Measures relating to adult social care include:
• £5.9 billion will be provided through the Social Care Grant, supporting both adult and children’s social care – whilst equalising for the adult social care precept. This is an increase of £880 million compared to 2024-25.
• £2.6 billion will be distributed through the Local Authority Better Care Grant
• £1.05 billion in 2025-26 will be distributed for adult social care through the Market Sustainability and Improvement Fund (MSIF)
Vic Rayner, NCF CEO commented: “While we welcome the additional funding of £880 million for adults and children’s social care, this won’t cover the increased costs for adult social care providers resulting from the Autumn budget. The costs of the Budget for social care have been estimated by Nuffield Trust to be £2.8bn.”
“Care and support providers have told us very clearly about the looming impact of the additional Employer National Insurance (NIC) contributions and the increase in the National Living Wage. Key findings from a survey of care providers carried out by the Care Provider Alliance laid bare the impact. 73% of respondents said they would need to refuse to accept new packages of care from councils or the NHS and 64% would need to let staff go. Clearly ; £880m for both adult and children’s social care is not going to provide sufficient funding to enable local authorities to meet the increased costs that providers face as a direct result of the Budget.”
“This inability to recognise and understand the importance of care and support in millions of people’s lives every day is incredibly disappointing and this settlement will do little to address the urgent issue of unmet need. There are an estimated 418,029 people currently waiting for a care and support assessment to allow them to stay at home, living well with choice and independence. This figure only represents people that Local Authorities are aware of.”
“Social care is a public service employing 1.6 million people which contributes £68.1 billion annually into the English economy and keeps people in work and contributing to the economy while also maintaining the country’s physical and mental wellbeing. Its role in helping the government achieve its missions is self-evident but despite the rhetoric we have heard from minsters, there exists a lack of understanding, or an unwillingness to make social care central to policy making.”
“We join other voices in urging Treasury officials to exempt social care and support providers from these increases in employers NIC, or alternatively to fully fund the increased costs. This must be followed up at the June spending review with significant investment in the longer-term reform of adult social care. Only by taking these steps can the government turn rhetoric into action, prove themselves willing to tackle the difficult issues and transform social care for the millions who depend on it and work tirelessly to provide it”.
About the National Care Forum
The NCF is the leading association for not-for-profit social care.
NCF brings together more than 170 of the UK’s leading social care organisations, representing large numbers of care providers, offering thousands of services across the country, which are not for profit and always at the heart of community provision. Collectively, these organisations deliver more than £2.3 billion of social care and support to more than 277,000 people. The NCF membership body collectively employs more than 124,000 staff and 14,000 volunteers.
More information is available on the National Care Forum at www.nationalcareforum.org.uk. @NCFCareForum @vicrayner @NCF_Liz
NCF called on the new government to take action to support social care in their “Social care must haves policy document”, published in summer 2024.
BCOP is a member of NCF.
