Telford Council Social Care costs up by £5.6m

Council confirms it remains ‘within budget’ as social care costs forecast to rise by £5.6 million.

Telford & Wrekin Council says it is staying within budget even as it forecasts having to spend a further £5.6 million on the ever-rising costs of adult social care.

Council leaders say they are forecasting having to use money already allocated as contingencies in the budget for this year but they are not having to dip into rainy day reserves, which remain untouched at £21.7 million.

Councillor Zona Hannington (Labour, Lawley) is the Cabinet Member for Finance, Governance & Customer Services at the council.

She told a meeting of the council’s cabinet on Thursday, that the £5.6million is in addition to the £7.7million that the council already decided to invest in social care in its 2025-26 budget.

“It is a national issue,” she told the meeting. “The financial pressures are being managed.”

The Government has asked Baroness Louise Casey to chair an independent commission into the issue, with a final phase reporting back to the Prime Minister by 2028.

Councillor Richard Overton (Labour, St George’s), the council deputy leader, said the council is ‘keeping on track for a balanced budget thanks to our strong financial planning and use of contingencies.’ He called on the Government to act on adult social care.

Councillor Kelly Middleton (Labour, Woodside), the Cabinet Member for Public Health & Healthier Communities said pressures are from people needing ‘more complex care for longer’ including more elderly people. She also said it is a ‘national issue’ for all major councils.

Budget papers presented to the cabinet said the £5.6m additional investment relates to the cost of providing care packages across ‘all client groups’.

“This includes the impact of market price increases, more complex needs, higher demand and longer periods of care being required; all of which are being analysed by the service with the aim of refining projections and managing spend,” a background papers said.

“This is after additional net investment of £7.7m into Adult Social Care in 2025/26 as part of the Medium Term Financial Strategy.”

Council finance chiefs told the Cabinet in papers for the meeting that the 2025/26 budget included a general revenue contingency of £3.950m which is set aside to meet any unforeseen expenditure or income shortfalls during the year and a one-off contingency of £3.250m set aside specifically for social care and other pressures.

The report read: “The current projected position would require use of all of the one-off contingency earmarked for social care and would leave a balance of £1.837m in the general contingency and £0.5m in the other contingency for the remainder of the year.”

The council also holds a ‘contingency’ for contractual and pay inflation.

Council officials were keen to stress that they still hold an untouched Budget Strategy Reserve of £21.7m.

Councillors will continue to receive financial monitoring reports throughout the year to keep an eye on how budget forecasts are holding up.