Proposed decision:
Approve the fee uplifts for Adult Social Care Providers for 2025/2026 and delegate authority to the Corporate Director Adult Social Care and Health to take relevant actions, including any changes to the percentage uprates, as necessary to implement the decision
Reason for the decision: We uplift our fees in line with our contract terms and in order to fulfil our duty to ensure a reasonable supply of good quality care.
We are cognisant of the impact of changes announced in the budget on the increase in the National Living Wage (6.7%) and changes in employers National Insurance Contributions, which combined with the National Living Wage adds upwards of 9% to the costs of employment. The local government settlement does not take account of the impact of these cost increases on the adult social care provider sector. The additional £680m funding for social care does not come close to meeting the full impact of these changes.
The detail of the uplift proposals will be set out in the formal decision report , which cannot be finalised until after we have received the local government finance settlement which will not be received before 19 December 2024.
The County Council has met with providers to discuss the impact of these changes and has worked together with Kent Integrated Care Association to lobby the Government for proper funding.
Direct Payments will be handled separately depending on the purpose of the payment.
The decision supports Priority 4 of ‘Framing Kent’s Future’, to ensure the sufficiency of the market of social care in Kent and objective 2 of Securing Kent’s Future to set a sustainable budget and meet our Best Value duty.
Other Options Considered and Discarded
Apply differing standard percentage uplifts applied to specified framework contracts according to the services provided. We rejected this option given the funding envelope available and the need to try to sustain the wider market, not just those on our framework contracts.
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 was rejected because it would not recognise the differential impact between providers with differing fee levels.
The proposal will be based on allocating the available funds to try to maximise the benefit and secure stability in the care markets.
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 24/12/2024
Decision due: Not before 22nd Jan 2025 by Cabinet Member for Adult Social Care and Public Health
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Cabinet Member for Adult Social Care and Public Health
Lead director: Richard Smith
Department: Social Care, Health & Wellbeing
Contact: Richard Ellis, Director of Integrated Commissioning Email: Richard.Ellis2@kent.gov.uk Email: Richard.ellis2@kent.gov.uk.
Consultees
The proposed decision will be considered at the Adult Social Care Cabinet Committee on 15 January 2025
Financial implications: The funding pot for the provider fee uplifts as set out in the draft budget is £26.3m. This is subject to approval of the 2025/2026 budget by County Council on 13 February 2025 and may be subject to change. All proposed allocations are those which are affordable within the Council’s agreed budget
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 (EQIA) has been completed. This is a live document and will continue to be updated as required. 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 and 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