Social Services: Finance

(asked on 23rd June 2025) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Spending Review 2025, when the funding for social care will be allocated to local authorities.


Answered by
Jim McMahon Portrait
Jim McMahon
Minister of State (Housing, Communities and Local Government)
This question was answered on 1st July 2025

The Spending Review allows for an increase of over £4 billion available for adult social care in 2028–29 compared to 2025–26. This includes additional grant funding, growth in other sources of income available to support adult social care, and an increase to the NHS’s contribution to adult social care via the Better Care Fund, in line with DHSC’s Spending Review settlement.

Council tax levels and the resulting income for services are decided by local authorities each year. The government maintains a referendum threshold so that voters can have the final say over excessive increases. The Spending Review confirmed the government intends to maintain a 3% referendum threshold, with an additional 2% for the adult social care precept, continuing the policy of the previous government. This will be subject to the annual approval of the House of Commons.

Local Authorities with responsibility for Adult Social Care will also benefit from wider reforms to better align funding with need, multi-year settlements and simplification of the local government funding landscape. My department is currently consulting on these proposals as part of Fair Funding Review 2.0 consultation which runs from 20 June to 15 August.

We will work together with local government to ensure that the funding available for adult social care supports delivery of priority adult social care outcomes. Further details on funding allocations and assurance arrangements will be provided at the provisional Local Government Finance Settlement later this year. The provisional Settlement will be subject to consultation, as in previous years.

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