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Local Government Finance: Coronavirus

Question for Ministry of Housing, Communities and Local Government

UIN 41904, tabled on 1 May 2020

To ask the Secretary of State for Housing, Communities and Local Government, for what reason the funding allocated to Wirral Council in relation to the covid-19 outbreak was £11,862 million in the first payment and £8,886 million in the second payment.

Answered on

12 May 2020

Following the Government’s announcement on 18 March of an initial wave of £1.6 billion of funding to respond to COVID-19 impacts on local councils, we continued to keep funding pressures under review, using both data collection and ongoing conversations with councils to refine our assessment.

On 28 April, the Secretary of State announced allocations of an additional £1.6 billion to individual local authorities.

Whereas the first funding allocation was primarily allocated to local authorities through the Adult Social Care Relative Needs Formula, in recognition that the greatest immediate pressures would fall on local authorities with social care responsibilities, this second wave of funding was allocated on a per capita basis. This reflects our latest understanding of the distribution of additional covid-related pressures, which are likely to be distributed in a way that is different from pre-existing needs.

It is important that these two waves of funding are seen together and that false comparisons between the two are avoided. Across both waves, more than 90 per cent of the funding will go to social care authorities. Wirral Council’s share is £20.7 million.