114 Care Provider Contract Uplift 2019/20 - KEY DECISION PDF 102 KB
Minutes:
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.