Local Government Finance: Elderly

Ann Coffey
To ask the Secretary of State for Communities and Local Government if she will bring forward proposals to change the formula for grant allocation to local councils for older people to reflect changes in the numbers of elderly people aged over 75 years and their increased social care needs.

Mr. Woolas
We tested a wide range of indicators of social service need, including those relating to age and health, when developing the current formula. As a result, I am satisfied that the variables in the older people’s formula adequately reflect relative social service need in different types of authority.

The new formula is calculated using data on the number of people aged 65 and over resident in each area, and pensioners living alone, in receipt of pension credit and attendance allowance, pensioners who live in rented accommodation and those aged 90 and over in each area.

We do expect to update the data we use in the relative needs formulae for the 2008-09 settlement, where possible. This will ensure that the calculations reflect changes in demographic and other trends in each local authority.