Lancashire County Council is proposing to increase the amount it pays a wide range of adult social care providers by £14m, to reflect the increased costs they are facing in delivering their services.

The county council supports around 25,000 adults in the community and in residential care, at an annual cost of around £300 million per year.

Under the proposal, a range of providers would receive an increase based on the increase in the National Living Wage and other factors including changes to pension auto-enrolment contributions.

The National Living Wage accounts for the most significant increase, rising from £7.20 to £7.50 per hour, a rise of 4.17%.

County Councillor Tony Martin, cabinet member for adult and community services, said: "The County Council's finances remain hugely challenging, due to a combination of cuts in Government funding and a rising demand for our services, as our population lives longer, often in poorer health.

"In spite of that, we recognise that we have a duty to help ease the pressures on those companies who provide such vital care to some of the most vulnerable people in our society. We have consulted with providers, through the Health and Social Care Partnership, and they have welcomed the level of the increase.

"Our financial planning accounts for the price increases, so approving these proposals would not worsen our financial position. However, the stark fact remains that we are currently using the council's reserves to balance the books, and those reserves are forecast to run out in 2018/19.

"The bottom line is that we need Government to rethink how they fund local government.