1. Budget Survey 2015 A call to government to protect vital care and support services for the most vulnerable members of our community

2. Cuts are deepening and services are being reduced More people living longer with more complex needs Councils running out of efficiencies: service reductions of £420m this year 5 years of funding reductions: £4.6b – 31% of real terms net budgets £0.5b further reduction this year in cash terms – without adding in the effect of more people needing care Fewer people getting care and those that do get less

3. Only 7% of directors are fully confident that planned savings can be met in 2016-17 Only 5% of directors are fully confident that planned savings can be met in 2017-18

4. More fragile markets Councils have frozen provider fees for a number of years. But now they see they will need to pay more. This year only 3% of savings will be found through that route. In the context of providers selling up, concerns about quality, wages and the need for a million more workers in the future, maintaining a caring, compassionate and trained workforce in a sustainable provider market is now a key concern.

5. Spend on prevention is squeezed Spend on prevention 6.6% of budgets this year A reduction of 6% in real terms from previous year A struggle to balance with existing statutory duties when budgets under so much pressure

6. Councils and the NHS Councils facing significant and ongoing cuts They are protecting adult social care (35% of council budgets) but can’t do so forever

7. Social Care NHS From 2011 to 2015/16 Health Funding has increased by 19.3%: £97.5bn to £116.4bn During this time Social Care Funding has decreased by 10.7% from £14.9bn to £13.3bn The money being transferred from the NHS is not enough to mitigate these spending reductions.

8. Pension auto-enrolment Individual employers paying over £10k per annum to any one individual are liable to pay 1% of salary as a pension contribution Failure to do so can result in a £400 fine to the Employer, escalating to a per day fine, followed by potential legal action estimated 170,000 individual employers who have a LA funded package & growing at around 200 per month DH are of the view the Care Act monies make adequate financial provision to cover this

9. Pension Auto-enrolment Next steps Roll out of user guides via NCAG, Healthwatch England, Direct Payment Support Services, Local ULOs etc. Rolling programme of regional briefings for both LA Staff and Individual Employers. ADASS Exec to confirm support for this approach. Work through cost implications for a met, borough and shire (all of whom have a significant proportion of Individual Employers). ADASS Executive to confirm support for this approach. Negotiation with DH about costs arising and likely impact as part of CSR

10. Comprehensive Spending Review (CSR) Awaiting announcement as to detail and timing of next CSR. Various options (5 years – 1 year) Government has announced Departmental savings targets for 2015/16 to include £200m from Local Authority Public Health spending. ADASS is responding to consultation on £200m reduction Chancellor making Budget Statement 8 th July 2015

11. Comprehensive Spending Review ADASS will be supporting LGA submission, providing anonymised detail from Budget Survey 2015 Detailed discussions underway with DH to test Government assumptions about: Unmet Need (400,000 2009/10 to 2013/14) Demographic Pressures (3% pa) Ability to maintain levels of savings (low confidence of Directors) Financial stress of Councils Provider market sustainability (provider fees) Relationship ASC and NHS

12. Future Funding We want a social care system that is protected, aligned and re-designed. Councils are doing what they can to protect adult social care funding: the government now needs to protect people needing care and support in the forthcoming budget and spending review.