Annual spending by local authorities on social care rose by £556 million in 2016/17 to £17.5 billion, new figures show. That constitutes a 3.3 per cent increase in cash terms and a one per cent increase in real terms. It is the first time social care expenditure has risen in real terms since 2009/10.
In 2016/17 local authorities were able to raise the council tax precept by two per cent for the first time in order to fund adult social care. This raised an additional £382 million.
The Adult Social Care Activity and Finance Report, published by NHS Digital shows that while expenditure has risen, there has been minimal change in activity, which may be linked to the increasing costs in the provision of care.
Some councils commented on the change in expenditure, citing factors including the introduction of the National Living Wage on 1 April 2016 and an increase in support for complex needs. The average costs of care per week for residential and nursing care have risen in 2016/17: the cost of residential care for people aged 65 and over was £565 a week in 2016/17, rising from £549 in 2015/16; the cost of nursing care for the same age band increased to £606 a week from £563.
There was a large amount of variation in year-on-year spending among councils. Ten councils reported cash terms increases of over 10 per cent, four of which reported increases of over 20 per cent. In comparison, 42 out of 151 councils reported a decrease in expenditure compared with 2015/16.
