Reason for the decision: While in 2023/2024 we applied a differential uplift, in 2024/2025 we are returning to a standard uplift for framework providers which seeks to balance available funding, Consumer Price Index and provider pressures.
The proposed allocations are those which are affordable in the Council’s recently agreed budget. We are aware that the proposed uplift will not meet providers’ expectations. We will work with providers to offer incentives where we can work together to reduce costs overall, for example by working with an individual to increase their independence, or framework providers increasing their capacity to reduce off framework spend.
Other Options Considered and Discarded: There were three options identified as to how the fee uplifts could be managed this year:
· Apply differing standard percentage uplifts applied to specified framework contracts according to the services provided, as we did in 2023/2024. We rejected this option given the funding envelope available.
· Apply no uplifts across all services: this was discarded, because although we cannot meet providers’ expectations, we have to do what we can within our constrained resources to support providers with their challenges.
· Apply standard percentage uplift across all service provisions: This is the preferred option given the limited funding available. It seems to be the fairest approach given that all care sectors are facing cost pressures.
Financial Implications: Table 1 below shows the proposed percentage fee uplift, as a proportion of the overall provision in the 2024/2025 budget. The first section represents those services where a standard percentage uplift will be provided to all framework providers.
Providers within both these and other services, on individual (non-framework/INDI contracts) will receive no automatic uplift to their fees although, additional funding is available for individual price negotiations. Allocation of this funding will be governed by the development of a standard approval process based on the financial viability and benchmarking of the provision in question.
Direct Payments are handled separately and are uplifted depending on the purpose of the payment, eg to access day care, purchase agency care or to directly employ a Personal Assistant.
Table 1 – Price Uplift – Budget Impact 2024/2025
|
|
% |
Vulnerable Adults £000 |
Older People £000 |
Total £000 |
|
Framework providers
|
4% |
9,119 |
7,193 |
16,312 |
|
Provision for Direct Payments |
|
2,316 |
828 |
3,144 |
|
Provision for individual negotiations |
|
|
|
9,391 |
|
Total uplift budget |
|
|
|
28,847 |
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 20/02/2024
Reason for urgency:
Semi-urgent decision:
The fee uplifts need to be finalised by 7 March 2024 to enable them to be applied to the Council’s Adult Social Care case management system in time for providers to be able to submit invoices for the revised rates from April 2024.
In order to apply the required systems changes, the decision could not reasonably be deferred to the next meeting of the Adult Social Care Cabinet Committee. The decision will be reported in retrospect to the committee meeting on 13 March 2024.
Decision due: Not before 28th Feb 2024 by Cabinet Member for Adult Social Care and Public Health
Reason: This decision will be taken via the semi-urgent decision process
Lead member: Cabinet Member for Adult Social Care and Public Health
Lead director: Richard Smith
Contact: Richard Ellis, Director of Integrated Commissioning Email: Richard.Ellis@kent.gov.uk Email: Richard.ellis2@kent.gov.uk.
Consultees
Due to the urgency of this decision no formal Cabinet Committee consultation has been undertaken – views from Members will be sought and included in the decision paperwork. The decision will be reported in retrospect to the Adult Social Care Cabinet Committee on 13 March 2024.
Financial implications: Please see information above
Legal implications: There have been no legal implications identified as it is for local authorities to set their own prices in the light of current market activity and status. Local authorities have a range of statutory duties including through the Care Act 2014, but also has a duty to set a balanced budget within the resources made available through the national funding settlement.
Equalities implications: Equalities implications: An Equality Impact Assessment has been completed. This is a live document and will continue to be updated as required, but the EQIA outlines how certain client groups will be impacted by the decision, where the full cost of the care is paid, or where the assessed contribution is greater than the full cost. It also sets out the mitigating factors in these instances. Data Protection implications: A Data Protection Impact Assessment is not required as there are no material changes to the way in which personal data is handled, nor the way in which it is used. Similarly, this work does not involve data profiling or changes to the way in which special category data is handled,