Care Act ‘under threat due to lack of funds’

Six months after the Care Act 2014 came into force, councils are struggling to implement its first-phase reforms. The Act places a series of new duties on local authorities that have the potential to reduce reliance on formal care, promote people’s independence and wellbeing, and give people more control of their own care and support. However, without adequate funds, these duties will likely not be met in a meaningful way.

The Care and Support Alliance, representing 80 of Britain’s leading charities campaigning for a properly funded care system, has submitted evidence to the Public Accounts Committee Care Actfirst-phase reforms and local government new burdens inquiry. Its submission highlights the growing concerns about implementation as well as the increased number of councils who may need support with implementation.

Confidence is dropping across the board. According to the first ADASS budget survey since the Care Act came into force, Directors’ confidence in delivering planned savings has fallen sharply from 45 per cent fully confident this year, to just 5 per cent for 2017/18. Vicky McDermott, Chair of the Care & Support Alliance [and CEO of Papworth Trust] said:

"There is an increasing number of local authorities who are concerned about their ability to deliver key aspects of the Care Act, such as prevention and market sustainability. This lack of confidence is only going to increase unless councils get greater support with implementation.”

The Act’s news duties on local authorities to prevent, reduce or delay the needs for care and support could reduce reliance on formal care and its associated costs. Yet, while directors of Adult Social Services Departments have reported an increasing reliance upon prevention in making savings going forward, current council expenditure on prevention represents only 6.6 per cent of the budget – a 6 per cent fall in cash terms since 2014/15[1]. Vicky McDermott reflects:

“The Care Act is a bold reform of the system, but it must be adequately funded so that councils can fully implement the reforms”.

The Care & Support Alliance have multiple research projects underway to determine the impact of the first-phase reforms implementation; upon both councils and people. The Department of Health has also commissioned research into the impact of Care Act reforms, but this will not be published until later in 2015.

Chloe Carter, Chair of the Alliance’s Care Act Implementation Group [and Policy & Advocacy Manager at the British Red Cross] said:

"The existing evidence is cause for concern. However, we recognise the evidence base is an emerging one.

"We therefore strongly recommend the Public Accounts Committee holds a further Care Act first-phase reforms inquiry in or around May 2016."