Spain to cover 50 per cent of Andalucía's dependency care funding with new reform

The Spanish cabinet approved a royal decree on Tuesday that increases central government funding for the long-term care system.

The government promises to cover 50 per cent of the cost of Andalucía's dependency care system, in line with the legal requirement and a long-standing demand from the regional government.

The reform will inject an additional 6.2 billion euros into the sector over 2026 and 2027. Andalucía will receive an extra 954 million euros during that period, according to the government's regional delegation.

As of 31 May, 352,209 people in Andalucía had recognised entitlement to long-term care benefits, according to the Spanish institute for older people and social services (Imserso).

The additional funding will cover the minimum funding level: the amount the state contributes for each person with a recognised level of dependency. On top of that, the government will provide further funding through the agreed funding level, the second mechanism through which central government contributes to the system.

Of the additional 954 million allocated to Andalucía, 318 million will arrive in 2026, increasing central government funding for the region's long-term care system to 957.6 million euros this year. The remaining 636 million will follow in 2027, when state funding will reach 1.275 billion euros.

The government's regional delegation explained that, without this week's reform, the state would have transferred only 640 million euros to the Andalusian government this year under the minimum funding level, based on the current number of people receiving care.

María Jesús Montero from the regional government's opposition welcomed the additional funding, describing it as "a decisive opportunity to ease the serious difficulties facing Andalucía's long-term care system and the ordeal dependent people and their families are currently experiencing".

She said the increase in funding would provide "more resources to reduce waiting lists, strengthen care and improve services".

"Reaching 50 per cent state funding in 2027 means more resources to cut waiting lists, improve care and strengthen services. The Andalusian regional government must now focus on managing this investment. There are no more excuses," she wrote on social media.

The reform, which comes into force in July, will substantially increase the financial support available to people with recognised dependency.

People with grade III dependency (the highest level) will see monthly payments rise by 128 per cent, from 290 to 660 euros. Payments for those with grade II dependency (severe dependency) will double from 130 to 260 euros per month, while people with grade I dependency (moderate dependency) will receive 90 euros a month instead of 76, an increase of 18 per cent.

By increasing investment in long-term care, Prime Minister Pedro Sánchez's government fulfils one of their commitments to fund half of Spain's dependency care system, with each region continuing to finance the remaining 50 per cent.

Andalusia to commission more than 26,000 care places

The Andalusian regional government has also approved a new contract that covers 26,328 places in care homes, day centres and night centres for people with dependency needs across Andalucía, with a total budget of 776 million euros.

The package includes 18,450 residential care places and 7,788 day centres for older people, increasing capacity by 2,000 places compared with the current contract.

The new contract will run from 1 October 2026 until 30 September 2028, with the option to extend it for a further two years.

The 776 million euros budget covers the 2026, 2027 and 2028 financial years. Residential care accounts for 603.9 million of the total, while day centre services receive 172 million euros.

Track regional finance, business and economy news