Care Homes: Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what discussions she has had with local authorities on the level of funding for care homes.
Answered by Jim McMahon
The Department works closely with local government and other government departments to understand specific demand and cost pressures facing local government on an ongoing basis. This involves looking at a range of cost and demand data, as well as regular engagement with local authorities.
These engagements have informed the 2025-2026 Settlement, where the Government is providing over £10 billion in 2025-26 Settlement funding for social care through the Market Sustainability and Improvement Fund (MSIF), Better Care Fund (including discharge funding), Social Care Grant, Children’s Social Care Prevention Grant and Children and Families Grant.
Local authorities are responsible for deciding how they use available funding to fulfil their duties under the Care Act (2014). The Department recognises the significant pressures that councils are facing and will ensure that councils are able to continue to deliver the services their communities rely on.
We will set out allocations at the provisional Settlement in December, on which we will consult, and we will continue to work closely with local government to review specific demand and cost pressures to ensure councils are supported in delivering essential services.
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