Warning over social care crisis as families prepare for big increases in council tax
awkwardly with voters inspired by the Conservatives’ talk of fairness and levelling up. Council tax was the elephant in the room when the Chancellor delivered the Budget.
“While he set out support packages for those worst hit by Covid-19, there was no such respite for millions of modest and low-income households facing crippling council tax bills.”
Stuart Adam, of the Institute for Fiscal Studies, said: “It is a way to allow councils to raise more for social care in the short term while the Government sorts out some more fundamental solutions for the long-term funding of social care. It was one of the things that the Budget was silent about.”
Lord Lilley, a former social security secretary who will publish his own blueprint for social reform next week, said: “Because the Government has been unable to decide how to reform finance of social care it has left council taxpayers to take the strain.
“Councils’ care budgets have been squeezed to the limit. The proportion of people over 85 living in care homes has shrunk from 25 per cent to 15 per cent and can’t go much lower.”
The Local Government Association said: “Councils face the tough choice about whether to increase bills to bring in desperately needed funding to protect our services at a time when we are acutely aware of the significant burden that this could place on some households.
“Council tax rises – particularly the
adult social care precept – have never been the solution to the long-term pressures faced by councils, particularly in social care, which is desperately in need of reform.
“Further action is desperately needed to immediately shore up social care services – which have been on the front line during the pandemic – and to secure the long-term future of care and support.
“The Government must urgently bring forward its proposals.”
About a quarter of councils that provide social care will issue a council tax bill to Band D homes of more than £2,000 in April, most for the first time. And in more than two thirds of areas, bills for a Band D home will rise by at least £50.
In London householders will be hit by a 9.5 per cent rise in the portion of council tax charged by the Greater London Authority – an extra £31.59 for a Band D home.
The combined rises mean Band D bills look set to rise by more than £100 this year in around seven of London’s 32 boroughs.
A spokesman for the Ministry of Housing, Communities and Local Government said: “We’ve committed over £35billion to help councils support their communities and local businesses during the pandemic.
“We’re also providing councils with £670 million of new grant funding to enable them to continue reducing council tax bills next year for those least able to pay, including households financially hard-hit by the pandemic.
“Councils are and have always been responsible for setting council tax levels. We set referendum principles to ensure that local people have the final say over any excessive increases.”