Proposed Local Authority approach to the allocation of temporary funding to meet the increased costs of providing care in the adult social care sector

Topics covered: COVID-19, local authorities, Nythan Smith

On 8 April 2020 the LGA and ADASS produced a statement on the temporary funding of social care providers during the pandemic. The primary purpose of the statement is to provide direction to local authorities as to how they might manage the increase in costs that adult social care providers will be incurring as a result of the current pandemic.

It is acknowledged that providers are likely to need to recruit additional employees at extra cost to cover for staff absence through illness.  Additional costs such as PPE and effectively managing outbreaks alongside the already complex needs of the existing resident populations are expected to increase the cost of providing care.

The statement is clear that the additional £1.6 billion provided to local authorities by the Government should be used to cover increased costs directly related to the increase in costs caused by the Covid-19 outbreak. The increase in costs are to be calculated from the baseline that costs were being properly funded and those arrangements met the requirements of social care providers. Many observers in the sector dispute that this baseline figure was ever sufficient to ensure the sustainability of sector in both the shorter and longer term.


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