Decision details

Care fees are reviewed annually as part of the budget setting process (and in accordance with service specific contractual obligations as appropriate) to reflect inflationary pressures in line
with the Care Act 2014 ‘Support Statutory Guidance’ which specifically requires Local Authorities to:
• Reflect a fair cost of care in fee setting, and not to set arbitrary or unsustainable fees.
• Enable providers to pay at least the national minimum/living wage.
• Understand the business environment and risks faced by providers.
For 2024/2025, the key inflationary factors effecting care provider costs are –
• The National Living Wage (for adults 25 or over) increasing by 9.7% to £11.44 hour with effect from April 2024.
• The Consumer Price Index (CPI) 12-month rate was 6.7% in September 2023.
The Council has liaised with the ICB colleagues in considering the 2024/2025 fee proposals, considering that some care packages are jointly funded.
The proposals contained in this ODR enable the Council to fulfil its Care Act responsibilities in relation to market stability and ensure adequate and appropriate service provision

To increase the Provider Care Fees for 2024/25 as detailed on the ODR

The option to not increase the fees was considered but was not recommended due to true unavoidable increasing provider costs being recognised.
Recommended option is to inflate the fees based on contracts, to take account of the National Living Wage and CPI inflation, and to continue to support our partners in delivering quality
services.