News

• Social services fear new finance deal will leave them out of pocket

Local authorities in England look set to receive significant cuts to their funding for older people’s services next year, writes Katie Leason

Research shows that the government’s allocation for older people’s services under a new funding formula, 'formula spending share', is £797 million less than the £5.69 billion amount for 2002/03 under the existing standard spending assessment.

The figures, analysed by the Liberal Democrat group on the Local Government Association, show that even the 10 councils with the highest numbers of older people face significant cuts. Essex faces a £28.2 million cut, while West Sussex will see a cut of £16.6 million and East Sussex by £16.4 million.

While councils may try to make up the shortfall by raising council taxes and other means, the Liberal Democrats are concerned that the cuts will mean a "treble whammy" for older people’s services, which also face increased costs due to the proposals set out in the Community Care (delayed discharges) Bill and the new care standards.

The figures for 2003-04 can be viewed here