Children’s Services: Funding

Lord Bassam of Brighton Excerpts

Thursday 10th May 2018 Lords Chamber

Asked by

[Lord Bassam of Brighton]

To ask Her Majesty’s Government how they intend to ensure that there is sufficient funding for local government children’s services.

[Lord Young of Cookham (Con)]

My Lords, funding for children’s services is made available through the local government finance settlement. Local authorities are being given access to £45.1 billion in 2018-19 and £45.6 billion in 2019-20—an overall increase since 2017-18 of £1.3 billion. Core spending power is largely not ring-fenced, allowing local authorities to decide how best to direct their funding. Local authorities used this flexibility to increase spending on services for young people and children to around £9.2 billion in 2016-17.

[Lord Bassam of Brighton (Lab)]

My Lords, I thank the Minister for his reply, which sounds remarkably like the Written Answer I received over a month ago. He says that local government has all this money to spend, but he will be aware that this is the total funding available for 800 different services that local government delivers, of which children’s services is just one. The National Audit Office says that local government funding has been cut by 50% in real terms since 2010, and the Minister’s figures show that local authority spending on safeguarding and looked-after children continues to increase year on year. What assessment has the Minister made of local government’s capacity to remain at this level of spend on vulnerable children, particularly in the light of the LGA’s analysis that councils are facing a funding gap of around £5 billion by 2020, of which £2 billion is in children’s services? Does the Minister deny that councils, such as my own in Brighton and Hove, have had to close Sure Start centres and youth services and end play provision and supervised parental contact? A crisis is emerging in children’s services.

[Lord Young of Cookham]

I am glad that the figures are the same as the ones in the Written Answer given a few weeks ago. The noble Lord is right to say that, over the past eight or 10 years, local authorities have had to manage with fewer resources from the centre. I think that local authorities of all colours have done well to maintain good-quality services with access to reduced resources. They have done that by improving back-office services and front-line delivery. More recently, the Government have recognised that those constraints need to be relaxed: we have raised the cap on council tax increases to 3% before the referendum trigger is activated; we have put £2 billion into social care, taking some of the pressure off local authority services; and, as I said in my reply, we are putting more resources into the grant. On top on that, local authorities have access to £21 billion in reserves, up 47% since 2011. We believe that they now have the resources available to continue to provide good-quality services to children.