Councils in England are now spending almost two-thirds of their budgets on social care, and it’s costing them almost £4bn more than 10 years ago.

That leaves less room in the budget to pay for other services provided by local authorities, like bin collections, road maintenance and public parks. And it’s rural councils with the oldest populations which are being stretched most.

Councils that have made cuts say they are responding to a combination of pressures, including rising inflation, the sharp reduction in government grants since the 2010s, and the increasing demands of caring for an aging population.

Local authorities in England spent more than £30bn on social care in 2021/22, out of £49bn total spending on all services, excluding education. That’s an increase of almost £4bn, or 15%, since 2012, even after adjusting for inflation.

Meanwhile, spending on transport services has declined by £1.2bn, spending on culture and the environment has reduced by more than £1bn, and spending on housing has gone down by £300m in real terms.

See what your council spends on social care

Halton Council, in Cheshire, spends more than 80% of its total budget on social care, a massive increase from just 52% in 2012. The £92m they spent in 2021/22 is £20m higher in real terms than what they spent in 2011/12.

Over that period they have cut spending on street lighting by £1.7m – a huge two-thirds reduction – and road maintenance by £600,000, a 25% cut.

Many of the areas spending the least on social care – in some cases actually spending less than they were 10 years ago – were in London.

In Tower Hamlets, for example, they spent £13m less in real terms on social care in 2021/22 than they did in 2011/12, while spending about £130,000 more on road maintenance.

Why is this happening?

Over the past decade there has been a change to how councils are funded. The reduction of government grants, beginning in 2013/14, meant they needed to raise more funding directly.

There is a limit to how much councils can raise in council tax – capped at 5% a year – and not all councils raise it by the maximum amount.

‘The government have to take it more seriously’

Councillor Rob Moreton, an independent councillor in Cheshire East, told Sky news about his personal experiences of trying to get jobs done amid tight council budgets:

“I’ve been trying to get this road resurfaced for four years now. I just get constantly told there’s not the funding for it this year ‘We’ll try and get it on a scheme for the year after, no money available’.

“Social care is very important. But potholes are also important if it’s costing car drivers thousands of pounds in broken springs, punctured tires, and everything else.

“It’s totally unacceptable. We need more funding from central government. In 2020 we got £19m, then it was reduced to £15m and this year is £17.3m. The government are now producing £200m nationally for councils, but for Cheshire East that’s £2.3m, which is less than the £5m they’ve cut from us in recent years – we’ve had a 41% cut.

“The government have to take it more seriously and start funding councils. They have lost touch with local councils.”

Councils also have legal obligations that they have to fulfil, which limits where they can make savings.

For example, they must provide social care to those young and old people who are eligible for it.

Who’s eligible for council-funded social care?

So if more people become eligible for social care – which happens naturally as the population ages – council costs start to rack up. This has left some councils with difficult financial decisions to make, particularly those with older populations in rural areas.

Areas where more than a quarter of the population are over 65, like Devon, Suffolk and Dorset, which were among the highest social care spenders in the map above, have seen their social care costs rise by more than 40% in real terms since 2012.

If councils are limited on how much more money they can bring in, and they need to spend more on social care, they are forced to make cuts elsewhere to make their budgets work.

Councillor Tim Oliver, chairman of the County Councils Network, told Sky News: “Over the last decade, councils in county areas have seen a significant decrease in government funding at a time when their elderly populations have increased dramatically, with the number of over 65s in those areas rising by 1.1m from 2011 to 2021. At the same time, demand for children’s services has also increased rapidly.

“As a result, those councils now spend 64% of their budgets on average on these two service areas, with councils having to balance their legal duties to care for elderly and young people eligible for care with the funding they receive.

“Increasingly, this has meant money has been re-routed from bus subsidies, libraries, and community health services to make up the shortfall elsewhere.”

Jackie Weaver, a former parish councillor who became temporarily famous in 2020 when she was told that she “had no authority” over a meeting of Handforth Parish Council, in Cheshire, in a popular social media video, told Sky News that a contraction in services at county and district council level mean that town and parish councils are having to fill the gap:

“All the kind of community stuff that is visible, that makes us feel good, doesn’t happen anymore. They don’t have any money to do it.

“What we are seeing is that town and parish councils are stepping forward and picking up the slack. Over the past 10 years they’re recognising that nobody’s going to do it for us. If we want an improved transport scheme in the town, or a neighbourhood plan, then we’ve got to step up and do it ourselves.”

We put our findings, and the responses from councils, to the Department for Levelling Up, Housing and Communities. A government spokesperson said: “We are making an additional £5.1bn available for councils in England in the next financial year.

“We are also providing multi-year certainty to local government, outlining spending over the next two years to allow councils to plan ahead with confidence.”

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