Government has announced it will be allocating £554m in New Homes Bonus for 2022/23.

It comes as part of the provision financial settlement for local authorities.

In the announcement, the Department for Levelling Up, Housing and Communities adds: “The government remains committed to reforming New Homes Bonus to improve how housing growth is incentivised, and our response to the consultation on the New Homes Bonus will be published in the coming months.”

Also part of the deal was more funding for social care, following the release of the Social Care White Paper.

The government is making more than £1bn of additional funding available for social care and £162m will be allocated to prepare councils for “social care reform and to help move towards providing a fair cost of care.”

There will also be £111m provided to English councils with responsibility for services such as homelessness, planning, recycling and refuse collection and leisure services. The “funding floor has been updated” so that no council will have less funding available in 2022/23 than this year.

The provisional settlement consultation will be open for 4 weeks, closing on 13 January 2022. The government will provide confirmation of the final local government finance settlement once consultation is complete in the New Year.

Secretary of State for Levelling Up, Michael Gove, said: “Councils continue to deliver for their communities and have a major role to play in our central mission of levelling up the country.

“Today’s funding package represents a real-terms increase from last year’s settlement and will make sure councils can improve vital frontline services, support vulnerable people and protect residents from excessive council tax rises as we build back better form the pandemic.”