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Local Government Finance: Disadvantaged

Asked by Sir James CleverlyConservativeMinistry of Housing, Communities and Local GovernmentTabled Answered 20 April 2026UIN 124738

The question

To ask the Secretary of State for Housing, Communities and Local Government, what assessment has been made of the potential impact of increasing the weighting given to deprivation figures to funding in the Local Government Finance Settlement on council incentives to reduce welfare dependency.

Answered by Alison McGovern

The cuts of the 2010s were felt across local government, but it was deprived local authorities with weaker tax bases and greatest reliance on government funding that were most affected. This eroded the link between funding, deprivation and need, but this Local Government Finance Settlement will turn this pattern around.

We know deprivation is a factor that drives the level of spending on children’s social care services, as well as for many non-social care services. Therefore, including data on deprivation within the Foundation Formula and Children and Young People’s Services Formula enhances the effectiveness of how we assess local authorities’ relative demand for services.

As a result of our reforms, by 2028-29, the top 10% most deprived areas will receive 45% more funding per head than the least deprived. Local authorities have the flexibility to use funding in a way that responds to local needs, and can prioritise based on their own understanding of the needs of their local communities.

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