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Social care is ‘taking centre stage' as the main factor driving councils' requests for exceptional financial support (EFS) from Government, a new paper has found.Nearly two thirds (60%) of councils reported social care as the main driver of demand.They typically requested higher levels of support, with a median EFS request of £48.5m.The analysis by the Chartered Institute of Public Finance & Accountancy (CIPFA) found fewer councils naming commercial pressures or reserves and balance sheet weaknesses as the key driver of financial distress.Sixty per cent of councils are financing EFS through borrowing, which the report highlighted as ‘concerning given the prevalence of financing pressures'.It added: ‘Borrowing to address budget gaps increases future financing costs, contributing to a cycle of recurring EFS requests.'The report drew on evidence from the latest cohort of 35 councils receiving EFS in 2026/27, with total support reaching £1.5bn.Fourteen per cent of councils reported homelessness and temporary accommodation pressures as the main driver, and the median EFS request for these councils was £20m.Other pressures included 8% of councils reporting Dedicated Schools Grant/Special Educational Needs and Disabilities-led pressures, with these councils seeing a median EFS request of £9.4m. Nearly half (59%) identified inflation, pay and National Living Wage pressures as secondary drivers ‘with impacts across the services they deliver'.Worcestershire CC was among the councils granted EFS in 2026/27, receiving £59.9m. President of the Society of Council Treasurers and chief financial officer at Worcestershire CC Phil Rook told The MJ the majority of the demand for EFS at his council was due to increasing demand for adults and children's social care.He added: ‘EFS is a one-off income stream that kicks the can down the road again. For me it's [a question of] what's the sustainable solution, because more authorities are going to go into EFS with [local government] reorganisation as well. They're going to be smaller, with less financial resilience.'Writing in The MJ today, senior policy manager at CIPFA Joanne Pitt pointed to a ‘constantly shifting' policy environment.She said debate in Westminster about social care provision ‘continues to evolve, and new Prime Minister Andy Burnham reiterated the case for more radical reform of social care funding'. She added: ‘Specifically, he said he intends to fast-track the Casey Commission's review of adult social care, bringing the original 2028 reporting deadline forward.‘Such signals point to the potential for significant reform. Depending on policy decisions, funding changes could reduce the financial burden for many councils.'

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FINANCE

Social care is main driver of councils' emergency funding requests

By Ann McGauran | 27 July 2026

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