Councils claim care funding shortfall

Local authorities have reported a shortfall in
funding following the transfer to them from this month of
responsibility for care home residents with preserved rights rates
of benefit.

who were in care on 31 March 1993 and who needed public funding
towards the cost of an independent care home place received it in
the form of a special higher rate of income support.

councils have claimed that government has underestimated what is
needed for them to cover their new responsibilities.

Local Government Association has warned the Department of Health
that there must be a fully funded transfer of responsibilities “to
maintain stability in local social care markets and the continued
resourcing of identified social care needs”.

Concern said any shortfall could hurt the very people who were
being cared for. Policy officer Pauline Thompson said: “We have
been fighting for this legislation for a long time. Preserved
rights provided a benefit level that didn’t often meet the fees of
the care home, meant a continual drain on capital, the need for a
family top-up or help from a charity and we are pleased it has

we are concerned that the transfer of funding may not be adequate.
If there is a shortfall there is bound to be a knock-on effect and
that could have consequences for the very people who are in care
and who it was meant to help.”

and Cleveland Council has already found a funding gap of
£120,000, despite receiving £1.75m from the

council has been criticised by care home owners for the delay in
re-assessing preserved rights residents. A spokesman for the
council said: “Reassessments will be completed by October. During
this time the homes will continue to receive the same rate of
payment as they used to get from the Department of Social


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