One in ten councils cut adult social care spending by 25%

One in ten councils have cut adult social care spending by more than a quarter, according to new research.

The Institute of Fiscal Studies (IFS) has found that spending fell by 18% in the North East, from £479 per adult in 2009-10 to £395 per adult in 2015-16.

Nationally, cuts were also larger, on average, in areas that in 2009-10: spent more on adult social care; had higher assessed spending needs; and were more dependent on central government grants.

David Phillips, Associate Director at the IFS and an author of the report, said:

“It’s one of the biggest parts of government spending but it’s seen some big cuts in spending in the last few years and even bigger cuts of people in receipt of adult social care services.

“There’s a real choice coming. Are we willing to pay more for social care, more taxes, or have less spending than other areas? That’s something the government is looking into in the coming years and months with a review of the social care financing arrangements in the country.”

South Tyneside Council is the third hardest hit council in the country by reductions in Government funding, according to the IFS.

Cllr Ed Malcolm, Lead Member Resources and Innovation said:

“Here in South Tyneside we have had to reduce our adult social care spend by 20 per cent in cash terms since 2010 due to the lack of Government funding we have received. South Tyneside, like many other councils across the country, is facing huge cost pressures arising from the national living wage and demographic changes - the number of residents over 85 years old is expected to double in the next 20 years.

“The additional funding for adult social care recently announced will go a small way towards addressing the financial challenge we face but in no way resolves it. The Government has not indicated what funding there will be, if any, beyond the initial three-year period. We need long term solutions and fair funding - we wait to see if the Government’s planned review of adult social care can deliver that.

“Research by the Institute of Fiscal Studies has confirmed that South Tyneside is the third hardest hit council in the country by reductions in Government funding. However, in the face of these challenges, the Council has shown resilience and innovation. Since 2010 we have radically changed our customs and practices - modernising how the Council operates so it delivers more help for those who need it most. We now have almost 40 per cent less to spend on helping the people of South Tyneside to realise their ambitions.

“We will continue to do our best for the Borough with the unfair hand we have been dealt since 2010.”