Councils raid reserves to cover soaring social care costs as funding gap grows
A widening funding gap and relentless demand for adult social care and SEND services are forcing councils to drain emergency savings, with leaders warning that half of authorities may need a government bailout within three years.
Eleanor Whitfield
Writer ·
- Council funding gap estimated at £2.3 billion in 2025-26
- Gap projected to rise to £3.9 billion in 2026-27
- Un-ringfenced reserves fell by £2.8 billion across two years
- Around 42% of councils drew on reserves in both years
- Half of social care authorities may seek emergency bailouts within three years
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