Under pressure: local councils and their ageing population

A report by the Audit Commission has added to the social care debate by claiming most local authorities are not preparing for the financial challenges of an ageing population, and costs will increase as a result

Local authority managers need to prepare cheaper ways to cope with older people, using technology and taking into account a person's ability to look after themselves.

A report out today from local government watchdog the Audit Commission says all councils need to prepare for the impact of an ageing population and need to plan to overcome obstacles to joint working, to reduce the need for people to go into hospital or residential care.

The report says that based on its sample, only one in 10 councils are taking account of changing demographics in their medium-term financial planning, and Michael O'Higgins, chairman of the Audit Commission, expressed concern that the issue is not being addressed at a high enough level in many authorities. "It suggests the planning is being done at the mid-management level in social care, rather than at a strategic level right across an authority," he said.

Councils will struggle to cope with the financial challenge posed by England's ageing population and may miss opportunities to innovate and save, according to the Audit Commission. Its report, Under Pressure, says most councils do not know enough about the costs of their ageing population and may also miss the savings that could flow from preventive services and better work with other organisations, particularly those involved with housing, leisure and culture, and transport.

By 2026, 40% of people will be over 50

Councils spend about £9bn a year on care services for older people, such as residential care and home care services. By 2026, 40% of people will be over 50 and the report warns that councils' costs will increase without careful planning, as the number of older people increases each year. It also says authorities should reduce residential care costs below the Department of Health's suggested target of 40% of the budget for older people's care services.

The cost of social care for elderly people is a political hot potato at the moment, following the recent breakdown of talks between all three political parties to find consensus on funding for social care [http://www.guardian.co.uk/society/2010/feb/14/tories-accused-over-elderly-care] and O'Higgins said the Commission's report showed that if local partnerships and providers were able to think more creatively about providing care, that need not cost more than existing services.

"In the current financial climate, that is more important than ever," he commented. "If authorities don't get this right, they will have to continue tightening eligibility criteria. "

O'Higgins said older people do not want to become dependent, but councils need to help them help themselves, so they can live at home longer - costing the taxpayer less. He says the next generation of older people will use iPhones and the internet and exploiting technology can make council services better, more tailored to individual need.

Local authorities already need to make billions of pounds of extra savings by 2013-14 because of cuts in public spending, says the report. It cites several councils already using technology to save money, such as the use of telephone care helplines, in use in Essex and North Yorkshire, which helps people obtain help in their own homes.

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