Research and Analytics


CIPFA Personal Social Services Actuals Statistics

March 2006

This statistical booklet relating to personal social services contains details of actual expenditure and income for 2004-05 together with non-financial data which in total provide a substantive analysis of the different activities for local authorities in England, Wales and Scotland. This is the fifth publication to reflect the review of CIPFA's Service Expenditure Analysis (SEA) for Social Services which forms part of the Best Value Accounting Code of Practice. The SEA applies to published financial statements for financial periods beginning on or after 1st April 2001 for England and Wales and 1st April 2002 for Scotland.

Financial Statistics

The statistics show that in 2004-05 local authorities in Great Britain spent a total of 19.6 billion on the provision of personal social services. This is an increase of 9.5% since 2003-04 when expenditure amounted to 17.9 billion. It is estimated that local authorities will spend 20.3 billion in 2005-06, a further 713 million or 3.6% increase over 2004-05. The figures include capital charges and some residual expenditure on supporting people but exclude income from specific grants. Only 3.7% of the total gross expenditure in England relates to supporting people. The majority of this expenditure is classed as a housing function and therefore not reflected in the personal social services statistics.

Table 1 summarises the trend in net expenditure over recent years and shows an increase of 55% since 2000-01.

Net Expenditure 2000-01 to 2005-06 (including capital charges and residual expenditure on supporting people)
Gross expenditure on personal social services in 2004-05 is shown in Table 2, analysed by client group. Some 42.3% of expenditure was on services for older people and 23.2% on services for children and families as illustrated by Diagram 1. Income from sales, fees and charges (client contributions) amounted to 2.3 billion, contributing 9.5% towards total gross expenditure. In 2000-01,14.5% of total gross expenditure was recouped from client contributions.

Expenditure and Income 2004-05 (including capital charges and residual expenditure on supporting people)
Client Group as a percentage of Gross Expenditure
Services to Older People (Adults aged 65 and over) in England and Wales

In 2000-01, around 61% of gross expenditure on services to older people in England and Wales was on residential provision, 8% on assessment and care management, 21% on home care and the remaining 10% on other services. The proportion of gross expenditure spent on residential provision in 2004-05 has reduced to 58%, whilst assessment and care management has increased to 11%. Table 3 shows the trend for the last five years.

Gross Expenditure on Services to Older People (England and Wales) (including capital charges but excluding residual expenditure on supporting people)
Assessment and care management covers the process of receiving referrals, assessing need, defining eligibility, arranging for packages of care to be provided and reviewing the quality of, and continued relevance of, that care. Between 2000-01 and 2004-05, gross expenditure (in cash terms) on assessment and care management increased by 73%.

Direct payments, which were first offered to older people in February 2000, were seen as a means to bring about improvements in the quality of life of people who would like to manage their own support. Since 2000-01, expenditure on direct payments to older people has almost doubled. However, less than 1% of gross expenditure is spent in this way.

Gross expenditure on home care provision for older people amounted to 1.9 billion in 2004-05, an increase of 11% over the last year and by 36% since 2000-01. More than 21% of the gross expenditure on services for older people can be attributed to home care. Expenditure on meals has remained virtually constant over the last five years with 109 million spent during 2004-05.

Nursing and residential care home placements continue to be the main area of expenditure on services for older people. A total of 5.0 billion was spent during 2004-05, an increase of 4.3% since 2003-04.

Summary Tables

Analysis of Expenditure and Income - England
Analysis of Expenditure and Income - Wales
Analysis of Expenditure and Income - Scotland
Net Total Cost (including Capital Charges)
Net Cost per Head of Population (including Capital Charges)
Residential and Day Care Average Unit Costs for 2004-05
Meals and Home Care Average Unit Costs for 2004-05
Number of Resident Weeks in 2004-05
Day Care in 2004-05
Meals and Home Care Services for 2004-05
Referrals, Assessments and Reviews in 2004-05

March 2006

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