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New care funding to be allocated using relative needs formula

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The £240m announced by the government for social care yesterday will be distributed to councils using the social care relative needs formula, the government has confirmed.

A spokesperson for the Department of Health & Social Care also told LGC the funding was new money from the Treasury rather then re-allocated cash from the existing departmental budget.

Councils will also learn how much they receive “over the next few days”.

Health and social care secretary Matt Hancock told the conference in Birmingham the extra funding will be used to free up hospital beds during a seasonal surge in demand this winter.

The DHSC said the money could pay for 71,500 care packages and 86,500 reablement packages. Councils will also have the option to spend the money on home adaptations.

The Local Government Association reacted to the announcement by saying “short-term bailouts are not the answer” and called for a long-term funding solution.

The Association of Directors of Adult Social Services called on the government to “go much further, much faster”.

A total of 10% of the £2bn improved better care fund over three years announced in the 2017 spring budget was distributed using the adult social care relative needs formula, with the rest allocated through the better care fund formula, which takes into account the amount councils can raise through the social care council tax precept.

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