By Andrew Topping, Local Democracy Reporter
Nottinghamshire County Council bosses expect a change to how future social care reforms are brought forward after a new Health Secretary was appointed in Government.
The Conservative-led authority has previously said it expects a financial black hole from social care reforms which could hit budgets by as much as £90m.
Earlier this summer, it warned some services could be cut if extra funding does not come forward from Whitehall.
The reforms would see the authority paying a ‘Fair Cost of Care’ to agencies, potentially rising hourly payments from about £19 to £23.50, in a move that could cost as much as £41.57m to Nottinghamshire County Council.
But current Government forecasts suggested the authority could only get as much as £8.82m, leaving a funding gap of £32.5m.
Council bosses have since written to the Government to suggest the reforms are unrealistic to achieve without more support.
Now concerns have been raised after new Prime Minister Liz Truss indicated plans to reverse the recent 1.25 per cent National Insurance rise to help people with the cost of living crisis.
The tax rise came via the health and social care levy, with funding for the reforms offered through cash generated from the rise.
Now, however, the Government and new Health Secretary Therese Coffey plan to scrap the levy and fund any changes through general taxation instead.
And speaking in the county council’s overview committee on Wednesday (September 7), Melanie Brooks, the authority’s corporate director for social care, said she does expect some changes from Ms Truss’ Government.
She told councillors: “We are waiting for the Department for Health to get their directions and their priorities.
“I’m expecting there to be a bit of a change when it comes to social care reforms and how they’re ordered.”
On the reforms themselves, she added: “With the Fair Cost of Care, the Department of Health is reviewing its guidance and we don’t yet know when it will be implemented.
“We have a report about our departmental readiness going to the adult social care committee on this.”
Her comments come after some councillors raised concerns about a change of Government putting the reforms in doubt.
Councillor David Martin (Ash Ind), who represents Selston, said: “It’s about time we had some direction and how we will operate.
“Social care reform is going to put a great burden on this council and it needs to be scrutinised closely, it could add up to £100m to the council’s budget and that needs to be monitored.”
Cllr Kate Foale, leader of the Labour group and divisional member for Beeston Central and Rylands, added: “Adult social care reform is going to be very expensive and really important.
“We need to plan for that now.”
But Cllr Sam Smith (Con), who represents Newark East, says his Government will still be funding the reforms even if the financial model changes.
He said: “Despite the Government under Liz Truss being due to cut National Insurance, the Deputy Prime Minister and new Health Secretary [Therese Coffey] says spending is committed to this as it was before.
“Everything this council is doing, it can continue doing with the knowledge funding is coming down the track.”
Speaking to BBC Breakfast this morning, Health Secretary Ms Coffey added: “Instead of having, in effect, a ring-fenced levy, we will be funding [health and social care changes] out of general taxation.
“The investment going to health and social care will stay exactly the same. It’s an important challenge we are facing and I’m looking forward to delivering that.”
Latest estimates suggest the Fair Cost of Care reform is expected to cost East Midlands authorities £802m within the first decade.
Other estimates include between £614m and £743m to bring forward an £86,000 cap on the lifetime cost of anyone’s care and for the creation of 221 care workers and 45 financial assessor roles to bring reforms forward.
