The government is to provide English councils with £1.6 billion of new annual grant funding over the next three years for social care and other services.
Of the £4.8 billion funding announced by the Treasury in the 2021 autumn budget and spending review, £3.6 billion will go directly to local government over the three-year period to implement the cap on personal care costs and changes to the means test.
This funding will also help local authorities better sustain their local care markets by moving towards a fairer cost of care, the Treasury said.
Some £1.7 billion over three years has been earmarked improving the wider social care system, including the quality and integration of care.
At least £500 million of this will be allocated to improve qualifications, skills and wellbeing across the adult social care workforce.
Additional funding through the local government settlement also aims to ensure all local authorities are able to meet core pressures in adult social care.
In addition, local authorities with social care responsibilities are expected to be able to increase the adult social care precept by up to one per cent per year.
The referendum threshold for increases in council tax is expected to remain at two per cent per year.
The measures announced by the Treasury are in addition to the new Health and Social Care Levy, which along with an increase to the rates of dividend tax, will raise around £13 billion per year for spending on health and social care across the UK.
