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Tackling the financial challenge of an ageing population

On 18 February 2010, the Audit Commission published a report (Under pressure: tackling the financial challenge for councils of an ageing population) which suggests that most councils do not know enough about the costs of their ageing populations and could miss out on the savings that flow from preventive services and better work with other organisations.

Local authorities already need to make billions of pounds of savings by 2013/14 because of inevitable cuts in public spending. Councils' costs will increase if they do not plan carefully given that the number of older people will increase each year.

The new report insists that councils need the right information to help make the right decisions. The needs of older people must be a central part of their plans for all local services, and they should involve the people themselves in developing services.

Some councils have been innovative, thoughtful and cost-effective in the services they provide. An ageing population also provides opportunities. Older people are often more involved with their local communities and more willing and able to volunteer. Assembled data reveals that 65% of volunteers are aged 50 or over. Similarly, 85% of older people do not use care services, but they do use general council services.

Increases in the number of older people will affect all councils (not just those with social care responsibilities) and housing services, the NHS and the police. But there are steps councils and others can take to plan and make better use of public money.

The report includes recommendations, challenges and questions for councils, voluntary bodies, the NHS and others. These may help them focus on finance and strategy for an ageing population and acquire the necessary information.

Case studies in the report show how some councils have collaborated to improve housing, health promotion and wellbeing plus how others ensured better value out of spending on care services.

Under pressure: tackling the financial challenge for councils of an ageing population (PDF)