Issue details

Proposed decision

That the Cabinet Member for Adult Social Care and Public Health:

a) APPROVE the changes to the Adult Social Care Charging Policy; and

b) DELEGATE authority to the Corporate Director Adult Social Care and Health to revise the Adult Social Care Charging Policy and to take relevant actions, including keeping the policy updated as necessary, to implement the decision

Reason for the decision

In line with the approved Budget Book, Kent County Council (KCC) is proposing to change its policy for charging for adult social care provided in a person’s own home or in the community. This means we are reviewing how much some people may have to pay towards the chargeable services that KCC provides or arranges, which include:

·       Care and support provided at home (for example homecare including supported living); and

·       Care and support provided in the community (for example daytime support).

This policy does not impact on people who live in and receive care and support in a residential care home.

We are proposing to stop disregarding the higher or enhanced rates of Attendance Allowance (AA), Personal Independent Payment (PIP) and Disability Living Allowance (DLA) when we calculate a person’s income (we already take into account the lower, middle or standard rates of these benefits).

This would mean that individuals in receipt of care who receive higher rate of these benefits would have more income taken into account in their financial assessment which would mean that they are likely to pay more for their care and support than they do currently.

We need to look at the amount of income we can generate by people contributing towards the cost of their own care. This is why we are proposing a change to the charging policy.

Background

KCC provide adult social care services to approximately 16,394 residents aged over 18 years old (data taken January 2024). Approximately 15,806 of these people receive chargeable social care services, this includes providing services like residential care and support and care in a person’s own home or in the community.

When people living in Kent need adult social care, as well as assessing their care needs, we also assess their income to decide how much they pay towards their care. This is known as means testing. Some people don’t pay anything, and the council picks up all of the cost, some people pay a contribution, and some people pay for all of their care (these people are known as full payers).

KCC sets out what and how people need to pay in the Adult Social Care Charging Policy.

KCC has already made substantial improvements and efficiencies to the way social care is delivered in Kent, alongside trying to limit the impact on the people that draw on care and support and help make the service sustainable.

Whilst KCC continues to strive to provide the best services we can, we continue to have the following growing pressures:

·       Significantly less government funding compared to nine years ago and we are expected to fund services through council tax contributions and income from other sources such as charging. The Revenue Support Grant (which includes adult social care as well as other council services) has reduced from £246.7m in 2013-14 (the first year of current funding arrangements) to £11.8m in 2024-25. There have been a number of separate social care grants which have been provided progressively since 2016-17 (not exclusively adult social care) which amount to £192.9m in 2024-25 but these grants have been provided in recognition of the pressures in social care and to fund improvements rather than replace the Revenue Support Grant reductions.

·       Increasing demand (an additional 1,152 people from March 2022-March 2023) for adult social care services, including people having complex care and support needs.

·       Significant annual increases in the National Minimum Wage (NMW) since 1999, which have impacted on the fees charged by care and other providers.

·       Continuing impact of inflation, which means we face growing pressures in the care market, including workforce challenges and rising costs for delivering care packages.

Options (other options considered but not taken forward)

Before deciding on the preferred proposal presented in the consultation, a number of options were considered:

Our preferred proposal would reduce the funding gap for adult social care services in Kent in year. However, we recognise that these alternative options could help to lessen the impact on individuals.

How the proposed decision supports Framing Kent's Future - our council strategy 2022 to 2026

The proposed decision aligns with the ambitions set out in Framing Kent’s Future to place Kent on a sustainable footing for the medium and long term and also aligns with Objective 2 of Securing Kent’s Future to identify opportunities to set a sustainable budget and MTFP.

Financial Implications

The latest budget monitoring presented to Cabinet on 21 March 2024 shows £30m budget gap for 2023-24, of which £31.3m relates to the Adult Social Care and Health Directorate before management action and one-off use of reserves are considered. Members have agreed the immediate actions needed to reduce spending in the short term and have set the course for getting the council back to financial sustainability, securing the services that residents in Kent need the most.

Spending growth in KCC 2024-25 is £209.6m as stated in the 2024-25 budget. The net change to the budget is £113.9m (matched by funding increases through government grants, council tax, etc), leaving £95.7m savings which need to be found.

Of the above, the spending growth in Adult’s 2024-25 is £115.8m as stated in the 2024-25 budget. The net change to the budget is £61.7m (matched by funding increases through government grants, council tax, etc), leaving £54.1m in savings/additional income which needs to be found, of which this proposal is included within.

It has been estimated that the proposed change could raise approximately £3.5million. We would use this money to help reduce the funding gap so that we can continue to provide council services to those who need them. If this proposal is not implemented, then the income would need to be achieved elsewhere.

Equalities implications

An initial Equality Impact Assessment (EqIA) has been completed and can be found on the consultation webpage: www.kent.gov.uk/adultsocialcarecharging or upon request. This is a live document and will continue to be reviewed and updated following the consultation.

Age, disability, sex, race and carer’s responsibilities have been identified as having potential for negative impact if we were to implement the proposed change.

We have taken the following information from two sets of data, these are:

·     Young people drawing on care and support aged from 18 to 25, who are moving from children’s social care into adults’ social care.

·     Adults aged 18 and over drawing on care and support from adult social care.

In the data for young people, there are 612 active individuals who receive care at home, in the community or have a direct payment that may be affected.

In the data for adults, there are potentially 9,011 individuals who receive care at home and in the community that may be affected.