PARLIAMENTARY WRITTEN QUESTION
(13 January 2026)

To ask the Secretary of State for Housing, Communities and Local Government, what data, analysis, and modelling did the Department use to determine the removal of the remoteness factor from the Area Cost Adjustment, and if the Government will publish or share this evidence with local authorities to demonstrate how the change accurately reflects differences in service delivery costs.

Asked by:
John Milne (Liberal Democrat)

The government is committed to tackling the issues that matter to rural communities. In addition to including a remoteness adjustment in adult social care formulas, we are including a journey times adjustment, which aims to account for the impact of the difference in travel times to provide services on the cost of labour; including updated deprivation data to help ensure that deprivation in rural areas is captured more accurately; and increasing the cap within the home to school transport formula from 20 miles to 50 miles

As set out in the Fair Funding Review 2.0, the government believes that accounting for variations in cost between local authorities is important when determining funding allocations through the Local Government Finance Settlement. This ensures that all authorities receive funding which reflects their costs relative to others.

Following the Fair Funding Review consultation, the government has taken the decision to include a remoteness adjustment in the area cost adjustment applied to the adult social care formula, but not to other formulas. This is because the best evidence we have heard indicates that distance from a major market has an impact on the cost of delivering adult social care services.

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