Social care facing financial crisis

COUNCIL: Social care in Sheffield faces a ‘growing financial crisis’ as a massive £20m overspend is forecast. Factors including Government grant cuts, a rise in children being taken into care and soaring costs for adult care are blamed.

SOCIAL CARE in Sheffield is in the middle of a ‘growing financial crisis’ as council bosses forecast a massive £20m overspend.

Factors including Government grant cuts, a rise in children being taken into care and soaring costs for adult care have led to the financial problem.

A report to be presented to a scrutiny committee at Sheffield Town Hall today also cites a ‘significant number of social workers’ are being lost to neighbouring councils such Rotherham who have offered higher pay and ‘guaranteed lower caseloads’.

Budgets for social care have been protected by council chiefs but at the expense of ‘significant cash reductions’ in other services.

Children’s services have also seen a ‘steep increase’ of children being placed into care from February 2016 to April 2017, which has ‘created significant pressures on resources’.

The report also noted ‘an increased influx of refugees and asylum seekers’ had ‘reduced overall capacity’ for the city’s children.

A growth in ‘client and provider costs’ and loss of Government cash had resulted in overspend in adult social care.

Sheffield has admitted ‘significantly more older people’ than councils with similar populations and needing care homes which are a ‘relatively high-cost resource’, the report added.

Forecasts show children’s services will spend £11m more than the budget available in 2017-18, reducing to £6m above budget in 2018-19.

Adult social care will have a £6m overspend in 2017-18, with the risk of increasing to £20m in 2018-19 ‘without the remedial action’.

Council reserves currently stand at £12m but bosses say using this in its entirety is ‘not financially viable’.

Local authority chiefs will now decide on the possibility of making further cuts to areas such as parks, libraries and highways along with temporary use of reserves, with plans to replenish them.

The report, co-written by Jayne Ludlam, executive director of people services, and Eugene Walker, executive director for resources, said: “As the month three report on this Cabinet sets out, the council is forecast to overspend by £20m, largely as result of overspends in adult social care £6.6m and in children’s social care £11.5m.

“This position is not unusual – most councils are currently experiencing similar problems, following seven years of austerity.

“Sheffield Council and the Local Government Association (LGA) nationally have for some time put forward the case for the Government to fund social care on a proper sustainable basis.

“Recent injections of funding from Government have not resolved this underlying national financial crisis in social care.

“Current predictions of demand suggest that, even with corrective action, both social care services will spend more than their budget for this and future years. This makes the sustainability of social care pending the key issue for the Council’s Medium Term Financial Plan.”

Sheffield Brightside and Hillsborough MP Gill Furniss laid the blame directly at the door of the ruling Tory Government for the city’s predicament.

She said: “The Tories’ cruel austerity strategy has meant Sheffield Council’s budget has been slashed by over £350m since 2010.”

She added: “The Labour Party has been clear: we will end austerity and ensure that such crucial services are properly funded.”

This position is not unusual – most councils are experiencing problems. A report to be presented to Sheffield Council today.