Ministers face calls for '˜urgent' review of social care

MPs are urging ministers to consider a hypothecated tax

In their latest damning report on the sustainability of the sector, members of the Communities and Local Government committee claim the combined pressures of an ageing population and “significant” budget cuts are having a “serious impact” on the quality of care available.

Their findings comes just three week’s after Chancellor Philip Hammond unveiled an additional £2bn of funding for adult social care services between now and 2020, in response to mounting pressure from MPs and councils across the country.

The MPs says the extra money is “welcome”, but warn that it “falls short” of the amount needed to close the current funding gap, and does not present a long-term solution.

“During our inquiry we heard mounting concerns about the serious impact which inadequate funding is having both on the quality and on the level of care which people receive,” said committee chairman and Sheffield MP Clive Betts.

“We heard compelling evidence of acute threats to care providers’ financial viability and an increasing reliance on unpaid carers.

“It is clear there are also severe challenges in the care workforce, with high vacancy and turnover rates, and low pay, poor employment terms and conditions, lack of training and inadequate career opportunities the norm across the sector.

“A long-term fix... is urgently necessary to meet the ever-increasing demographic pressures on the system.”

The cross-party committee has previously pointed to “significant reductions” in council budgets, the introduction of the national living wage and a growing demand as the key factors in the current funding crisis. In a pre-Budget report, the group warned that a combination of these pressure could leave the sector facing a £2.6bn black hole by 2020.

The Government has since committed to publishing a green paper on the long-term funding of care services. In its new report, the committee says this review must be “ambitious” and consider a “wide range” of revenue options, including a hypothecated tax.

These calls have been echoed by the chairman of the Local Government Association, Lord Porter, who said “all options must be on the table” for ministers.

“Councils are clear that the recommendations that come out of the Green Paper cannot end up being kicked into the long grass,” he added. “It is vital that political differences are put aside in the interests of real leadership so that we can tackle this crucial public policy question.”

A DCLG spokesman said the Government “recognises the challenges councils face in delivering social care”. “That’s why we’re giving councils an extra £2bn to help deliver these services, taking the total to £9.25bn over this Parliament,” they said.