Third of councils face social care funding cut after 'misleading' government changes, Andy Burnham says

Former health secretary says 57 councils will lose money and may have to cut social care spending

Andy Burnham said the government was 'giving with one hand but taking away with the other' (AFP/Getty Images)

A third of councils in England are facing cuts in Government funding and may have to slash spending on social care, Andy Burnham has said.

The former health secretary, who is now Labour’s candidate for Mayor of Greater Manchester, claimed government ministers had “misled” the public after promising new money for social care.

The Government has diverted money that was previously used to incentivise councils to build new homes to instead help fund adult social care.

But Mr Burnham said 57 local authorities will lose more than they gain from the changes – a third of all the councils in England that provide social care. In total, local authorities will lose £40 million from the changes, Mr Burnham claimed.

The London borough of Tower Hamlets will receive the biggest cut – losing £3.4 million next financial year as a result of the changes. Salford, Westminster, Milton Keynes, Islington and Southwark will all lose more than £2 million.

Sajid Javid, the Communities and Local Government Secretary, announced earlier this month that £240 million from the New Homes Bonus scheme, which rewards councils for building houses, will be diverted to a new fund for adult social care.

The move was criticised at the time by the Local Government Authority, which said the fund was "not new money" and "should not be presented as a solution". The change could disincentive house-building, it added.

Mr Burnham said the changes could mean funding is withdrawn from services for older and vulnerable people.

He said: "Theresa May's Government are playing a dangerous game on social care. They promised help for struggling councils but it is now clear that, while they were giving with one hand, they were taking away with the other.

"Far from acting on the social care crisis, the brutal reality is that the Government is deepening it and inflicting even more cuts on councils in some of the poorest parts of England.

"Social care has already been cut to the bone. If this further round of cuts goes ahead, it could have serious consequences for the NHS.

"That is why I am calling on Theresa May to intervene in this row and give a clear guarantee that no council in England will face cuts in central Government funding next April."

A Conservative spokesman said: “Andy Burnham's claims are simply not true. Councils will see an increase in adult social care funding over the course of this Parliament. The additional funding of £900 million over the next two years will further help councils across England tackle the growing pressures on social care.

“This is scaremongering from the Labour Party who are trying to make political points over the serious issue of social care.

"We know that money alone is not the solution. There is a diversity of provision across councils, with many already providing high-quality social care services within existing budgets, and so we need to make sure all local authorities learn from the best performers to raise standards.”