The government is to provide local councils with £433 million this financial year to pay for the cost of implementing the Care Act.
In a letter to directors of adult social services, the Department of Health said the money is earmarked for specific duties arising from the Care Act during 2016-17.
Of the total £121.1 million will go towards implementing funding reforms, including the deferred payment agreements that let people to use the value of their home to pay for home care.
Local authorities will also get £10.45 million to help meet their duty to assess and meet the care and support needs of prisoners.
Another £114.6 million will be added to the Better Care Fund and earmarked for supporting carers as required by the Care Act and to ensure carers get information and advice about what support is available to them.
The remaining £186.6 million will fund other new duties under the Care Act including carer assessment and support, access to advocacy support, adult safeguarding and ensuring care continues when people move between local authority areas.
Councillor Izzi Seccombe, the Local Government Association’s community wellbeing spokeswoman, said: “We are pleased that the Care Act funding is continuing. Councils have long called for reform but now we need the resources to deliver the changes we need to make to improve the support our elderly and vulnerable population receive.
“However even if councils face a flat-cash settlement over the next four years, there are still significant challenges ahead for councils who will have to make efficiency and other savings sufficient enough to compensate for any additional cost pressures they face. Inevitably adult social care, being the largest single budget within some councils, will have to make its share of these savings.
“These include those arising from general inflation, cost pressures in the care sector, increases in the number of adults and children needing support and rising levels of need, increases in demand for everyday services as the population grows.
“This is why the LGA continues to call for £700 million of the funding earmarked for social care through the Better Care Fund by the end of the decade to be brought forward now, to ease the severe strain on services supporting the elderly and vulnerable.”