Figures quoted in a letter from Communities Secretary Eric Pickles to local authority leaders reveals that by 2014/15 cash shared between councils under the Care Matters grant will have fallen to £28.2m - a cut of 48.6 per cent on this year's level of £54.9m.
The letter, dated 20 October, reveals that as a result of the spending review, the grant will be "rolled into" the local authorities' formula grant - a general funding stream that will not be ringfenced.
A spokesman for the Department for Education was unable to say whether the reductions in funding had been offset by increases to other funding streams.
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