ADASS Budget Survey 2020 Embargoed to 6 00

ADASS Budget Survey 2020 Embargoed to 6. 00 am on 18. 06. 20. Data collected 1 st – 22 nd May James Bullion, President Iain Mac. Beath, ADASS Trustee Cath Roff, ADASS Trustee & Resources Co-Lead 17 th June 2020

About Us The Association of Directors of Adult Social Services is a charity. Our members are current and former directors of adult social care and their senior staff. Our objectives include; – Furthering comprehensive, equitable, social policies and plans which reflect and shape the economic and social environment of the time – Furthering the interests of those who need social care services regardless of their backgrounds and status and – Promoting high standards of social care services • There was a 146/151 local authorities responded to the survey but not all respondents answered every question. • Survey carried out in May 2020.

Key Messages Budget Survey

Without significant financial intervention from the Government, the lives of people who use social care & their family carers will be seriously impacted in terms of their lives and wellbeing.

Local authorities have a legal obligation to deliver a balanced budget year on year

Planned savings to social care budgets are no longer possible £ 608 million of planned savings to adult social care budgets in 2020/21. 69% Directors indicated that 60%+ planned savings at risk as a result of Covid-19 in 2020/21 54% stated that up to 60% of planned savings at risk in 2020/21.

Reduced income due to Covid-19 Reduction in income from budgeted client contributions, as a minimum: £ 190 m for 2020/21 as a result of Covid-19.

Demographic pressures £ 520 m of additional funding needed to meet the same level of needs in 2020/21, compared to 2019/20. 64% of demographic pressures on adult social care budgets are focused on services for working age adults.

Declining confidence in meeting statutory duties due to Covid-19 2019/20 35% Directors fully confident budget sufficient to meet statutory duties. 59% partial confidence. 6% no confidence. 2020/21 4% Directors fully confident budget sufficient to meet statutory duties. 56% partial confidence. 35% no confidence.

Are you confident that your adult social care budget will be sufficient to meet all of the following statutory duties for the next 2 years? * 60% 50% 40% Fully confident Partial confidence 30% No confidence Unable to answer 20% 10% 0% 2020/21 2021/22

The actual costs to local authorities and adult social care providers of the pandemic will far outstrip the Emergency Funding made available by the Government to-date.

The risk of already fragile care markets failing has significantly heightened as a result of the impacts of Covid-19.

Care markets were fragile prior to the onset of the pandemic 43% of Directors reported that providers in their area had closed, ceased trading or handed back contracts. £ 17. 67 the average national hourly rate for homecare, up 5. 4% from £ 16. 77 in 2019. £ 690 m budgeted expenditure on direct and indirect costs of meeting increases in NMW/NLW in 2020/21 for adult social care.

Covid-19 will increase the likelihood of multiple providers failing 78% of Directors have seen a reduction in occupancy in care homes with mainly statefunded residents 51% of Directors have seen a reduction in occupancy in care homes with mainly self -funding residents 53% of Directors have received requests for financial support from care homes which have seen significant reductions in self-funding residents

Covid-19 - financial support to providers At the time of the survey (1 st May- 22 nd May) £ 575 m committed additional funding for providers from LAs. However, this means this figure will not fully reflect the current distribution of funding from LAs to providers. MHCLG returns show approx. £ 1. 470 bn from Emergency Fund is expected to be allocated for the purposes of adult social care in-year.

Supporting providers with cashflow Which of the following actions are you taking to help providers with their cashflow? (Click all that apply) 80% 70% 60% 50% 40% 30% 20% 10% 0% Pay on plan Paying immediately Payment in advance Paying average of upon invoice last x payment Agreed cash advance with reconciliation Strengthened investment in administrative and processing capacity

Hospital Discharge arrangements

Hospital Discharge 80% of councils act as the lead commissioner for additional community capacity to facilitate hospital discharge. 38% of areas used rates for commissioning additional capacity, higher than either usual LA rates or usual CCG rates. In 22% of areas a blended rate has been used, in 33% of areas LA rates. 55% councils have agreed a section 75 arrangement with their CCG. Only 40% have risk sharing agreements in place.

Recommendations for change A two-year ringfenced funding settlement for adult social care to cover the additional costs of Covid-19 & to allow reform to be agreed, planned & implemented. A new employment deal with our care staff, inc. a workforce strategy, ASC minimum wage, enhanced training, development and career progression, recognition & regulation.

Recommendations for change Reform of the care provider market based on sustainable new business models, economic growth, & commitment to improved quality – supported through regulation, a national market statement & local economic plans. A consultation programme over the next two years that works nationally, regionally & locally to build the care and support that people want now & over the next 10 – 20 years.

How much will this cost? Prior to the onset of Covid-19, the following calculations were made about the level of funding required to put ASC on a more sustainable footing: House of Lords- advocated a figure of £ 8 bn a year to restore care quality & access to 2009/10 standards, address increased pressure on unpaid carers & LAs & unmet need. Health Foundation- estimate that to meet the expected growth in demand from an ageing population and increase pay would cost £ 6 bn by 2023/24. (does not inc. reform/covid-19 costs)

We urge government department to share their calculations on a number of scenarios to reform Adult Social Care, alongside the funding system more broadly.