Issue - meetings

The Board considered a report of the Strategic Director, People, on the proposed annual uplift for domiciliary and care home providers within Halton for 2019/20.

It was reported that the Care Act 2014 required local authorities to ensure that the care provider market remained viable and sustainable and that when commissioning services, local authorities must have regard for the cost effectiveness and value for money that the services offered for public funds.

The Board was advised that one of the main challenges for the care sector was the introduction of the mandatory National Living Wage for workers aged 25 and above, effective from 1 April 2016, with an increase year on year, as detailed in the report. All care home, supported housing and domiciliary care providers that worked with the Council, had been consulted in respect of inflationary increases. It was noted that, based on the feedback from the care providers in the Borough, the average inflationary uplift required would be in excess of 3.2%. The increase in fee rates, as set out in the report, had been calculated based on the key risk areas, rather than an overall set increase.

Reason(s) for Decision

The recommendation to uplift the fees for our care providers above inflation was referenced throughout the report and was based on the identified risks to provision of care to vulnerable adults in the Borough.

Alternative Options Considered and Rejected

The social care market had been recognised nationally as being extremely fragile and the Council had a statutory duty to maintain market stability and sufficiency under the Care Act 2014. Not providing an inflationary uplift at a time when providers must pay the National Living Wage would destabilise the market. In addition, people were living longer with very complex health care needs and Halton needed a robust and skilled workforce to continue to provide high quality care for some of the most vulnerable people in our community.

The recommended increase was based on an analysis of the cost pressures on providers and included an element of flexibility to ensure that market sustainability and quality was maintained whilst being affordable to Halton.

An increase less than the recommendations could undermine market stability as providers would not be able to meet their mandatory responsibility to pay staff the National Living Wage, resulting in services becoming financially unviable. This would impact negatively on the local health and social care system, with a potential knock on effect for supporting timely discharge from hospital.

An increase of more than the recommendations would impact negatively on the Council’s finances and would be unaffordable. The Council would have less money available to meet its statutory duties to continue to support vulnerable adults.

Implementation Date

1 April 2019.

          RESOLVED: That the Board

1)    notes the contents of the report;

2)    notes the options and the risks; and

3)    gives approval to actively enter into discussions with Care Providers, with a view to offer the recommended uplift for 2019/20.