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GMB call for plan to end social care funding lottery

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GMB call for plan to end lottery of how social care is funded and make sure the elderly and vulnerable are paid for from general taxation.

It is a complete lottery as to who among the 1 in 15 of UK residents will end up in a care home. What should not be a lottery is how that care is paid for says GMB London.

GMB, the union for care home workers, has published an analysis to show the impact raising council tax by 8% will have on residents in London.

An 8% increase in Council Tax across the board has very different yields per head, for example £64.3 per head in City of London compared with £16.5 in Newham. The other areas in London with the highest difference per head of an 8% increase in council tax are: City of London with £64.3 difference, Kensington & Chelsea with £48.1, Westminster with £41.4, Richmond upon Thames with £35.6 and Hammersmith & Fulham with £33.

The 5 areas in London with the lowest difference per head of an 8% increase in council tax are: Newham with £16.5, Barking and Dagenham, £18.1, Hackney £19.8, Lewisham £21.1 and Haringey £21.2.

In the 2015 spending review, authorities with social care responsibilities were given the flexibility to raise council tax in their area by up to 2% above the referendum threshold for each year between 2016-17 and 2019-20, to fund adult social care services.

Recent reports suggest that Sajid Javid, Communities and Local Government secretary will give councils the right to increase the council tax precept further in an attempt to plug the social care black hole.

Set out in the table below are the 2016-17 Council tax base (for council tax setting purposes) figures with an extra 8% added and the council tax figures per head of population. The table has been compiled by GMB London region using official data from the Department for Communities and Local Government, see notes to editors for sources and definitions.

rank   Council tax base + 8% (£) Council tax per head current base (£) Council tax per head 8% increase (£) Yield per head from 8% increase (£)
1 City of London 7,605,360 803.9 868.2 64.3
2 Kensington and Chelsea 102,495,240 601.8 649.9 48.1
3 Westminster 135,195,588 516.6 558 41.4
4 Richmond upon Thames 93,693,348 445.5 481.1 35.6
5 Hammersmith and Fulham 79,964,172 412.7 445.7 33.0
6 Wandsworth 135,792,720 399.7 431.7 32.0
7 Bromley 136,788,480 389.9 421.1 31.2
8 Camden 95,040,000 365.1 394.3 29.2
9 Barnet 146,149,920 356.4 384.9 28.5
10 Sutton 76,214,736 352.6 380.8 28.2
11 Merton 77,033,160 348.7 376.6 27.9
12 Kingston upon Thames 65,173,680 347.8 375.6 27.8
13 Havering 92,311,920 343.2 370.6 27.4
14 Harrow 88,560,000 331.8 358.4 26.6
15 Islington 81,366,768 330.9 357.4 26.5
16 Bexley 85,073,760 325.3 351.3 26.0
17 Hillingdon 103,431,600 321.7 347.4 25.7
18 Ealing 118,057,068 318.6 344.1 25.5
19 Lambeth 108,852,120 310.7 335.5 24.8
20 Croydon 127,218,708 310.8 335.6 24.8
21 Hounslow 86,583,168 298.3 322.1 23.8
22 Southwark 98,529,480 295.3 319 23.7
23 Enfield 101,862,360 287.2 310.1 22.9
24 Tower Hamlets 90,172,440 282.8 305.4 22.6
25 Redbridge 90,003,528 280.8 303.3 22.5
26 Brent 96,394,752 275.5 297.5 22.0
27 Greenwich 80,284,716 270.5 292.2 21.7
28 Waltham Forest 77,632,776 265.1 286.3 21.2
29 Haringey 77,949,000 264.5 285.7 21.2
30 Lewisham 84,810,888 264.1 285.2 21.1
31 Hackney 71,953,920 247.7 267.5 19.8
32 Barking and Dagenham 49,404,168 226.5 244.6 18.1
33 Newham 74,008,944 205.9 222.4 16.5

Warren Kenny, GMB London regional secretary, said, “It is a complete lottery as to who among the 1 in 15 of UK residents will end up in a care home. What should not be a lottery is how that care is paid for. We well know that it is equally a lottery as to who suffers from health conditions but that is paid for from general taxation.

The only fair way of paying for the lottery of those in a care home is for the money to come out of general taxation.

The founders of the NHS envisaged a cradle to grave service but Mrs Thatcher changed that to a cradle to care home door service. This has introduced the lottery as to which families are burdened with meeting these costs and for councils to meet the costs where the family cannot meet them.

Not raising money from general taxation to pay for social care is inherently unfair. To now seek to raise the money via council tax is to compound the unfairness. Not all councils can yield the same money per head as the table above shows.

Privatisation of gas, electricity, water, telecommunication, transport and the post office has robbed proper funding of our public services especially care and health and instead of profits going towards public services the money is going into the pockets of shareholders and the elite.

It is not too late for the government to come forward with a comprehensive and wide ranging plan to make sure that the elderly and vulnerable in our society are paid for in a fair and responsible manner from general taxation.”

End

Contact: Dave Powell 07710 631349; Tony Warr 07710 631336; Keith Williams 07710 631339; Richard O'Leary 07710 631347

Notes to Editors

1 Source: Council Tax levels set by local authorities in England 2016 to 2017, table 9: 2016 to 2017 Council Tax requirement and chargeable dwelling figures