Councils face financial struggle over ageing population
Audit Commission

Local councils will have to struggle hard to deal with the financial challenges posed by the growth of England’s ageing population, a watchdog has warned.

As per the Audit Commission’s estimates, annual social care bill of 9 billion pounds will double by 2026 in case existing practices continue.

The report said local authorities require making billions of pounds in savings by 2013 due to inevitable cuts in public spending, but council cost would increase due to rise in the number of old people unless they plan carefully.

Councils are suggested to look at new and innovative ways to offer services, mainly by embracing technology.

The warning emerged at a time when the Government is considering an overhaul of the funding system for social care.

Michael O'Higgins, the chairman of Audit Commission said, "There are huge financial pressures on councils in the years ahead, but redesigning services and exploiting technology can make them better, more efficient and more personal."

It is worth-mentioning here that in 2009, 34 per cent of people were over the age of 50, but by 2026 the figure will be 40 per cent.

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