This LGA analysis provides an illustration of the impact of the proposed new adult social care relative needs formulas which are being considered for implementation in 2021/22 as part of the Government’s review of relative needs and responsibilities, commonly called the ‘Fair Funding Review’.
It does not signal any potential change of distribution of funding in the year 2020/21.
This analysis does not represent LGA policy, an LGA policy proposal, or an LGA preference – instead it is an attempt to provide some information to our member councils that would help gauge the likely impact of the fair funding review on the relative distribution of adult social care funding.
We are clear that the results of the review must be introduced alongside additional funding. No outcome of the review will be sustainable if overall resources are insufficient to maintain services as councils have seen significant reductions in funding and are facing significant cost pressures in the future. The LGA is calling for no local authority to see its funding reduce as a result of the review and a transition mechanism, backed by additional funding, would help deliver this aim.
Given the potential changes in funding for each individual council, the Government should publish official illustrations as soon as possible to enable meaningful financial planning. There has to be a clear timetable on when various consultations will be published, decisions made and the review concluded ahead of April 2021.
These illustrations should not be treated as definitive exemplifications. A number of caveats is set out in the ‘introduction’ tab of the spreadsheet. Each of those will mean that the official exemplifications coming from central government will be different. As a result, this analysis can only be read as a high-level indication of the broad direction of travel, and not as official financial planning guidance.
This analysis only looks at one segment of one of the parts of the fair funding review, so no conclusion can, or should, be drawn about the potential overall outcome of the review for any local authority.