Public Expenditure

Public Expenditure

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The October 2010 Spending Review has imposed tough settlements on both health and social care, and sets a highly challenging context for the delivery their services over the next four years. In both cases efficiency gains will need to be made on an unprecedented scale if care levels are to be maintained and the quality of services improved. The Committee does not agree with the Government's premise that the Spending Review settlement and the two year pay freeze will provide councils with the necessary resources to sustain current eligibility levels for social care. Councils will need to sustain further efficiency savings of up to 3.5% per annum to avoid reducing their levels of care. In this context, the Government is placing understandable emphasis on the 'extra' funding for social care, through the Personal Social Services grant and the Ap1bn through the NHS. However there is concern that the increases in the PSS grant will not be reflected in changes in actual spending on social care. It is also vital that the savings required by the health settlement are made by efficiency gains rather than making cuts, particularly considering the uncertain landscape of the NHS reorganisation following the White paper. Improving the interaction between health and social care will be critical if the necessary cost savings on both sides are to be realised. It is not enough for the government to exhort change in this area: there must be a formal policy infrastructure that recognises the importance of achieving a better overall interface between the two sectorsChair: I do not want to spend all day on the organisation costs. Q51 Dr Sarah ... I am thinking herea€”the Chairman is going to chastise mea€”about the proposals on NHS Direct, for example. ... There are other ones, like procurement of vaccines.

Title:Public Expenditure
Author:Great Britain: Parliament: House of Commons: Health Committee
Publisher:The Stationery Office - 2010-12-01


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