Plan to force councils to raise more money to pay for elderly care 'could spark a postcode lottery'

George Osborne has given councils new powers to levy council tax bills to directly fund social care

Local government chiefs have warned that changes could widen the gap in care standards (Getty)

George Osborne’s plan to force local councils to raise more of their own money to pay for elderly care could spark a “postcode lottery” that determines much help the vulnerable can expect to receive at home, Town Hall leaders have warned.

In the Spending Review on 25 November, the Chancellor gave councils new powers to levy an extra 2 per cent on council tax bills to directly fund social care.

However, local government chiefs have warned that the change could widen the gap in care standards. The LGA calculated that, even where the 2 per cent surcharge was applied, it would be worth more in wealthier areas with more expensive homes – adding 15 per cent to those councils’ budgets by 2020 compared with just 5 per cent in disadvantaged towns.

LGA deputy chair David Simmonds, the Tory leader of Hillingdon, said that depending on individual circumstances, “you are not going to get any help at all” in some areas.