Lambeth Council is set to review its adult social care savings programmes for 2025-26, as it faces increasing demand, complexity of needs and provider inflationary pressures.
The Adult Social Care and Health Scrutiny Sub-Committee met on Thursday 10 July 2025, to discuss the Medium-Term Financial Savings (MTFS) programmes and savings achieved to date. The council aims to maximize resource use and ensure it meets its statutory obligations under the Care Act 2014, while aligning with the Lambeth 2030 plan. The council is also exploring avenues of funding beyond reserves, including the Better Care Fund (BCF) and Integrated Better Care Fund (IBCF). However, demand is outstripping costs, even with these funding sources.
According to the Adult Social Care savings 2025-26 report, prior year savings targets of £2.9m in 2023–24 and £3.013m in 2024-25 were achieved, despite rising costs and demand. However, Adult Social Care faces unprecedented financial challenges, including increased demand, complexity of needs and provider inflationary pressures. The council is addressing these pressures through saving proposals that seek to maximize the use of resources and achieve best value.
Fiona Connelly, Corporate Director for Adult Social Care and Housing, summarized the report, noting that the council has delivered significant savings since 2023. Between 2023 and the end of the 2025-26 financial year, the council will have delivered approximately £7.5 million in savings through commissioning services, service redesign, and ensuring value for money. Connelly stated that the council is trying to minimize the impact of savings programs on current users of services and avoid driving demand in the future, adding, we have to make sure that we don’t do something short term...we look at the whole pathway
. The council is using analytics and trend analysis to inform decisions and avoid short-term savings that could lead to increased costs in the long term.
Richard Outram, Director of Adult Social Care, added that the pressures are driven by growth in demand and increasing costs. He noted that the council has been able to offset these pressures in the past by using reserves, but those reserves are no longer available. The council is working to reduce the pressure for 2025-26, which is currently estimated at £12 million. To achieve this £12 million savings target for 2025-26, the Adult Social Care savings 2025-26 report outlines several areas where savings are being targeted, including Day Services, Preventative Services, Extra Care, Sheltered Housing and Careline, 0-25 Services (Transitions), Reablement Services, Targeted Home Care Package Reviews, and Learning disability commissioning and placement reviews.
Councillor Bridget, Cabinet Member for Healthier Communities, expressed confidence in bringing forward the savings, which she said are key to the council's financial state.
The Appendix A MTFS savings 23-24 24-25 25- 26 document provides a breakdown of the MTFS savings achieved in 2023-24 and 2024-25, and the saving targets for 2025-26.
One area of focus is the right sizing
programme, which aims to ensure that individuals receive the appropriate level of care. This involves working with service users and providers to identify opportunities for more efficient service delivery. For example, exploring whether technology can be used to support independence or adjusting care levels based on changing needs. Outram stated that the 'right sizing' program involves a professional and a sensitive approach...open to ideas both from living services and ideas who provide services but within that...social work stuff will also provide their expertise as well
.
The committee also discussed the importance of involving service users in the process and ensuring that they feel heard. The council involves service users through the Lambeth Service User Council, which is a member of the Combating Drugs Partnership. The council also emphasizes a person-centered approach when following the wishes of service users following safeguarding concerns being raised. Councillor Annie Gallop, Chair of the subcommittee, emphasized the need to ensure service users are involved and feel that they are involved in the process when it comes to Care Quality Commission (CQC) inspection preparation.
The committee requested more information on the potential long-term costs of the savings, as well as any costs to other departments. They also requested examples of assessments of whether there might be costs down the line or costs further past the council.
