BUDGET 2021: Councils to get £4.8bn in grant funding, NLW to rise by 6.6%


Local authorities will receive £4.8bn in new grant funding over the next three years, as part of plans to reform health and social care, the Chancellor has said.

Delivering his Budget speech this afternoon, Rishi Sunak described the move as the “largest increase in core funding for over a decade”.

It is unclear whether the funding will be ring-fenced, and the government is yet to release details of how much of it will go to social care.

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The Chancellor told MPs: “To deliver the Prime Minister’s historic reforms for health and social care, we’re providing local government with new grant funding over the next three years of £4.8bn, the largest increase in core funding for over a decade.”

Sunak also announced that the National Living Wage will increase to £9.50 an hour from next April.

The government has accepted the Low Pay Commission’s recommendation for a 6.6% increase from £8.91, which applies to workers aged 23 and over. For those aged 21 to 22, the minimum will increase from £8.36 to £9.18.

The government says will give full-time workers an extra £1,000 a year.

Sunak said: “This is a government that is on the side of working people. This wage boost ensures we’re making work pay and keeps us on track to meet our target to end low pay by the end of this parliament.”

Return to HCI to read social care leaders’ reaction to the Budget.

Tags : BudgetNational Living Wagerishi sunak
Sarah Clarke

The author Sarah Clarke