Nottinghamshire Council expecting ‘significant shortfall’ in budget nearing £33m to fund Government social care reforms

The authority is raising concerns directly with the Government about the impact on its finances, saying funding support from Whitehall is unlikely to be ‘sufficient’ to meet the reform’s objectives, which include an £86,000 cap on the cost of social care during anyone’s lifetime.

A large uplift in the price authorities pay home and care agencies is also planned.

Councils are now assessing the impacts on their individual finances – and Nottinghamshire Council is concerned its costs will be too big to bear.

A report due before the council’s cabinet says the changes to care fees could cause the largest burden, with a multi-million-pound rise in the amount the council must pay after the changes.

UK Care Home Association analysis suggests the rate for care should increase by between 17.5 and 19 per cent, equating to £23.50 per hour for care services.

The council’s most recent average was £18.57 per hour in 2021, meaning the reform could lead to an hourly rate increase of almost £5.

Council reports say, in a worst-case scenario, the reform could lead to extra spending of £18m to care homes and £23.57m to home care services in the county every year.

The £23.57m for home care includes spending for supported living and day service providers and personal assistants.

However, the authority expects to receive just £8.82m from the Government in supported grants, leaving what the council describes as a ‘significant shortfall’ of £32.75m.

In the report, Melanie Brooks, council corporate director for adult social care, says the authority has written to the Government to raise concerns about the ‘issues and risks’ of the reforms but received ‘little assurance’.

She believes the reforms are unlikely to be achieved unless further financial support is provided by Whitehall.

She said: “There is a risk the two main policy objectives of the Fair Cost of Care cannot be realised in full within the budget envelope and timetable set out.

“It is difficult to see how Nottinghamshire’s share of the £1.4bn attributed to the delivery of this policy over the next three years will be sufficient to meet the objectives.”

Coun Matt Barney, council portfolio holder for adult social care, said: “These reforms present a significant challenge to local authorities across the country.

“We have a difficult road ahead. We want to continue to support people to live independent and healthy lives in Nottinghamshire.

“So, we are prioritising adult social care reform and working with other local authorities to reduce duplication and costs.

“We have also expressed our concerns to the Government and will continue to lobby ministers for funding and support to deliver these reforms.”

The £86,000 means-tested spend cap on care is also expected to cost East Midlands councils between £614m and £743m between now and 2032, the documents add.

A Department for Health and Social Care spokesman said: “Reforming adult social care is a priority and we are investing £5.4bn over the next three years to end spiralling care costs and support the workforce.”