The Government has announced an extra £150m for councils to spend on social care in the Local Finance Settlement 2018/19.

Secretary of State for Housing, Communities and Local Government Sajid Javid announced the extra finance for an Adult Social Care Support Grant yesterday, saying the funds would be taken from anticipated underspending in existing departmental budgets.

He said: ‘This will be allocated according to relative needs and we will expect to see councils use it to build on their progress so far in supporting sustainable local care markets.’

While welcome, the extra finance is well below the £1.3bn LaingBuisson estimated is needed to plug the funding gap between what councils pay and the actual costs of care home places alone, which is currently being subsidised by self-funding residents.

Commenting on the settlement, ADASS president Margaret Willcox said: ‘All money is welcome and we will make the most of what we get, but considering councils need more than £2bn just to stand still in 2018-19, this is not going to make a great deal of difference.

‘It also depends on what they define as relative need. Will it be spent in areas struggling with delayed transfers of care? Or will other factors come into consideration?’