LA confusion around Supporting People allocations

Having learned of a number of cases of confusion within Local Authorities around Supporting People allocations, we have set up this page to offer some clarity on the new system. 

A widespread misinterpretation of the system has resulted in certain LAs concluding they have been given a local allocation for SP, rather than a total figure for formula grant only. This is not correct, and is clearly giving considerable cause for concern to the services involved in these discussions.

We have asked DCLG to publish a clearer explanation of the guidelines. In the meantime, we have compiled the following overview to shed a little light on the issue.

1. There are NO local allocations for SP funding.  No council has a  distinct, identifiable  allocation for SP funding anymore. 
    
2. Councils have received their total local settlements (Download this data in Excel format from local.communities.gov.uk - column BV  shows  the 10/11 SP - damped). This gives a figure for total formula grant, and a few other elements.  In essence, local authorities have a lump sum from formula grant which they can spend as they please, within their statutory duties and obligations.
    
3. Some local authorities, have seen other figures, downloaded from the LGF website where the 2010/11 actual SP allocations have been listed and also the 2011/12 undamped SP allocations have been listed on the table, along with a number of other government grants (Download this data in Excel format from local.communities.gov.uk - column F shows the undamped allocations for 11/12 , calculated using  the Supporting People Distribution Formula).
    
4. Each central fund like Supporting People, Carers Grant etc. has its own set of criteria applied to it, to work out how much each local area would require to address the needs the funds are supposed to cover; hence ‘need’ allocation.
    
5. Finally, on top of that, some local authorities have received extra money in their final settlement given that they would otherwise be experiencing ‘too high’ cuts.  Eric Pickles has announced that transitional money added means that LAs cuts should not be bigger than 8.9%, though that is open to debate.