The Government is “seriously underestimating” the costs of its adult social care reforms – by at least £854 million a year, according to an independent report.
The report, commissioned by the County Councils Network (CCN), warns that care homes could face widespread closures and bed shortages when the reforms are introduced next year.
The LGA warned last month that underfunding risked derailing the reforms and could leave some councils facing a budget black hole (see first 669).
The CCN report, by LaingBuisson, looked at two adult social care reforms: allowing private payers (self-funders) to ask councils to arrange care on their behalf at lower, local authority rates; and the introduction of a new ‘fair cost of care’, to increase care fees paid by councils to make the care market sustainable.
The Government has allocated £378 million a year to pay for these changes, but the report calculates that at least an extra £854 million a year is needed to make the proposals workable.
An LGA spokesperson said: “The risks set out in this report potentially have serious consequences for providers, councils and, most importantly, for those who draw on care.
“The Government must act on its findings and work with councils to ensure an adequate uplift for social care, as well as support to implement the reforms.
“Many councils have approached us regarding these reforms and this timely report clearly highlights the risk to care homes. We remain clear that underfunded reforms also pose a risk to the overall financial viability of some councils as they stand now.”