Chartered Institute of Public Finance and Accountancy (CIPFA) has launched a new report titled Managing Rising Demand in Adult and Children’s Social Care based on case studies of best practice in demand management across England.
CIPFA finds that only 25% of local authority budgets remain for all other services after 75% of English local authority spend went on social care in 2022/23. Despite local authorities spending an increasing proportion of a reduced funding envelope on adult social care, rising demand continues to plague the adult and children’s social care system.
The report features a series of case study interviews with local authority adult, children’s and finance leaders across the country. Successful case studies of good practice in demand management include strong corporate and leadership buy-in, a focus on improving outcomes along with effective frameworks for monitoring forecasting and benchmarking.
As well as this best practice, however, if the UK government wants to address soaring demand for adult social care support along with the increasing number of children with special educational needs and disabilities (SEND) in England, it must also increase spending power.
The report finds that single-year funding settlements from the previous Conservative government hinders financial planning. Longer-term capital funding would offer councils greater flexibility to respond to rising demand and Government must act as quickly as possible to meet its commitments to move to multi-year settlements.
Owen Mapley, CIPFA CEO, said: "Increases in demand and higher costs in adult and children’s social care are continuing to impact communities and their councils, amidst a backdrop of significant reductions in local government spending power. We need innovative solutions, increased funding alongside longer-term funding settlements, and a greater valuing of the significant role that social care services deliver for our communities. Such collaboration and support from the new government will enable councils to enhance residents' lives through better planning and proactive measures.
“The case study examples in this report confirm the importance of partnership working and collaboration. A sustainable social care system can only be achieved through mutual understanding of costs, business models and risk, and the right funding and powers to meet demand. CIPFA calls on the new government to support this approach as it develops its fiscal and policy plans in the coming weeks.”
Dr William Burns, CIPFA Social Care Policy Advisor and report author, said: "The report provides focus points for councils to implement good practice in adult and children’s social care demand management. Within a social care system under strain, these tried-and-tested lessons learnt can help alleviate challenges for councils and improve the experience of care for communities and individuals.
"The research shows that public finance professionals play a pivotal role in effective social care demand management, ensuring value for money, managing risks, monitoring and evaluation, and strategic planning. CIPFA’s report offers a benchmark for the sector to steer itself towards a sustainable social care system that is fit for the future."
As an example of this best practice, Lincolnshire County Council shows how commissioning models that offer providers confidence in the nature and scale of activity help curate a well-functioning care market. The success of Durham County Council’s Care Academy in supporting the local care market demonstrates the role that local authorities can play in creating the conditions for providers to offer sustainable, high-quality care.
The report additionally sets out the ways in which the public finance profession, working closely with other stakeholders, can contribute to the delivery of improved market management and early intervention. Hertfordshire County Council and East Sussex County Council demonstrate how safeguarding family networks has a positive effect, including on the outcomes of children and families. CIPFA finds that finance professionals can contribute to this success by modelling for investment, supporting business cases along with monitoring and quantifying impact.
All case study areas recognise that effective approaches in demand management require the use of funding and resources from the council, partners, the community and government. CIPFA calls for mechanisms to develop partnership working and collaboration, such as forums.
Notes to editor