Local Government Finance Bill

Lord Brougham and Vaux Excerpts

Thursday 5th July 2012 Grand Committee

This is a very serious situation and the Government should take account of that in the speed with which and the way in which they implement this legislation. The adult social care funding system is bust. Until the Government grasp the nettle of repairing it quickly, we should not use this Bill to make a bad situation worse. I beg to move.

[The Deputy Chairman of Committees (Lord Brougham and Vaux)]

I must advise the Committee that, following a printing error, Amendments 54A and 54B should be numbered Amendments 56A and 56B to Schedule 2.

[Lord Best]

My Lords, I shall be brief in supporting the amendment of the noble Lord, Lord Warner. We all owe him a debt of gratitude. He was one of the three Dilnot commissioners, along with Dame Jo Williams and Andrew Dilnot. Their report remains the key piece of policy guidance to which we all look to reform the system fundamentally.

I have declared my interest as president of the Local Government Association, which is right behind this amendment. The LGA has made adult social care its highest priority. It is the issue about which it is most concerned at the moment. If we take out the dedicated schools grant, social care is already much the largest area of local government spending. The 28% cut to central government support for local authorities over the current spending review period has not, I am glad to say, led to a 28% reduction in social care services for older people, adults with learning difficulties and others in need of care. Local authorities have absorbed some 85% of those cuts through service redesign and efficiency savings. However, this can go on for only so long before very painful results become apparent.

The cost of adult social care services is now set to rise, on a trajectory that the LGA has calculated, from some £14.4 billion to £26.7 billion over 18 years. That is an increase of 85%. By the time we get 18 years down the road, we very much hope that a series of measures will be in place to head this off before we get to the point at which virtually all local government expenditure must be on social care. However, there is the period in between in which things may get worse and we do not want this legislation to heighten those dangers.

It seems unlikely that a Bill could be introduced before the next election. If something came forward in 2015, it would probably be enacted in 2016 and become effective in 2017-18. We would already be several years down the road. The King’s Fund has estimated that by 2014-15 the gap in social care provision will already have reached £1.2 billion a year. Central government support needs to be in place now. We will get a reset in 2020 but in the intervening period funding for social care is a really important consideration for the Government. Although there may not be an expectation of the noble Lord’s amendment being accepted in its entirety, the sentiment behind it is strongly supported by the Local Government Association.