Council Tax: Social Care Precept

Baroness Barker Excerpts

Wednesday 20th April 2016 Lords Chamber

Asked by

[Baroness Barker]

To ask Her Majesty’s Government how much revenue they estimate will be generated in 2016–17 by local authorities using their power to increase council tax to offset the cost of social care.

[Viscount Younger of Leckie (Con)]

My Lords, on 31 March 2016 the department published national statistics on council tax levels in England for 2016-17. This reported local authorities’ estimates that they would receive a total of £381.8 million in receipts for the adult social care precept in that financial year. One hundred and forty-four of 152 eligible councils chose to set the precept of up to 2%. The precept will raise up to £2 billion by 2019-20.

[Baroness Barker (LD)]

I thank the Minister for that Answer. This policy already favours those local authorities which have higher-value properties. Eight councils have decided not to raise the precept, so the Chancellor’s projection that this policy will generate an extra £2 billion between now and 2020 is already unravelling. Will the Government increase the better care fund for this financial year so that people in poor communities will not lose services and end up having to turn to the NHS?

[Viscount Younger of Leckie]

My Lords, the Government recognise that the local government settlement is challenging. Consistent with our approach to give local authorities more control over their own destiny, we are giving important new flexibilities which reflect concerns that councils have shared with us. We recognise that some councils with a low council tax base in the poorer communities will not benefit as much. That is why the better care fund, which the noble Baroness has mentioned, on top of the adult social care precept, will provide £1.5 billion by 2020. With this, importantly, average spending power per dwelling for the 10% most deprived authorities is around 23% higher than in the least deprived authorities.