Partial start for new funding formula

Elements of the controversial Supporting People distribution formula have been applied to the programme’s funding for the first time.

The formula, which calculates local authorities’ funding allocation based on need rather than existing provision in the area, has been applied to 5 per cent of next year’s funding.

In a letter to local authorities last week, Supporting People divisional manager Jane Everton said the responses to the recent consultation would be analysed further before the government made a decision on how future funding could be distributed based on need.

Early versions of the formula proved controversial as they would have led to some authorities eventually losing up to 60 per cent of their Supporting People budget.

But no authority will face a reduction in their budget of more than 2 per cent as a result of next year’s allocation.

Liverpool loses £800,000 from its £43m budget, and Camden has £700,000 shaved from its £36m budget. But several other London boroughs benefit from rises of 5 per cent or more.