PARLIAMENTARY WRITTEN QUESTION
Social Services: Finance (25 June 2020)

To ask the Secretary of State for Housing, Communities and Local Government, what recent assessment he has made of the potential effect on the social care sector of local authority insolvency; and if he will make a statement.

Asked by:
Ed Davey (Liberal Democrat)

We have made £3.7 billion available to local authorities through an un-ringfenced grant so they can address pressures they are facing in response to the COVID-19 pandemic, including expenditure pressures from adult social care. This includes £500 million of additional funding announced by the Secretary of State on 2 July.

Over 90 per cent of the funding announced in March and April has been allocated to councils with responsibility for social care services; allocations of the latest tranche of £500 million will be shared in due course. Local authorities have also received £600 million through the Infection Control Fund to pass on to social care providers.

The Department recognises the additional costs and pressures on finances councils are facing as a result of the current Covid-19 crisis. We continue to engage regularly with the local government sector, which includes our ongoing financial monitoring survey and direct contact with councils and their representatives, local Leaders and Chief Executives. We have also worked closely with CIPFA who have temporarily amended their guidance on the use of section 114 notices to further encourage local authorities to make contact with the Department in the first instance to advise of any immediate financial concerns.

Answered by:
Sir Simon Clarke (Conservative)
3 July 2020