Decision details

23241048-Price increase for Children’s Regulated legacy and spot purchase placements

Decision Maker: Assistant Director Partnerships, Early Intervention and Localities

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No


Following a price review the below provider has requested a price increase (uplift) for current placements which are not agreed via frameworks
The current spot purchase contract in place for these placements permit inflationary increases subject to a consideration of the actual costs incurred by the Provider and the need for value for
money justification.
The provider has demonstrated to the Council justification for the requested increases citing various reasons which generally relate to unavoidable cost pressures of inflation, National Living
Wage increase, National Insurance increase, pension costs and cost of living expenses etc.
These increases will ensure that the provider can continue to deliver good quality provision.


To agree price increases requested by providers for legacy or off framework placements.

Alternative options considered:

If unable to agree the price increases, then placement stability may become an issue, notice could be served resulting in us having to have additional placements that will be considerably
higher in cost.
There is a risk that notice is served if the provider is unable to cover their costs and not able to deliver the provision. A new placement would need to be identified and sourced for the young people who are currently in stable homes where outcomes are been delivered. This would also bring on extra cost as new current placements that meet the same criteria of these are substantially higher due to the current market

Publication date: 11/04/2024

Date of decision: 05/01/2024

Accompanying Documents: