Councils will have access to extra £1bn for social care next year

Local authorities will have access to an extra £1 billion to help them fund social care and address coronavirus pressures next year, the Government has said.

Chancellor Rishi Sunak said investment in public services will allow councils to increase core spending by 4.5%, and they will have extra flexibility to increase council tax and social care precepts.

Councils will be able to access over £1 billion of spending for social care through a £300 million social care grant and the option to levy a 3% adult social care precept.

Rishi Sunak delivers his Spending Review
Rishi Sunak delivers his Spending Review

Local authorities will be able to increase council tax bills by 2% without needing a referendum.

This funding is in addition to the £1 billion social care grant announced last year which is being maintained.

The Government expects to provide local authorities with more than £3 billion to address Covid-19 pressures, including in adult social care.

Ministers said this will help councils maintain care services “while keeping up with rising demand and recovering from the impact of Covid-19”.

It will bring forward proposals for the long-term reform of the adult social care system next year.