Priority in Corporate Plan - Living Well
Sub-priority - Living independently
Timescales - Implementation from April 2019
Proposal description
A further increase in the National Living Wage of around 4.8% is planned for April 2019. This is expected to result in the need for an above-inflation increase in fees to providers of community-based social care services such as home care, day care, supported living and transport. In line with the Council’s charging policy, it is proposed that the full cost charge for these services is also increased so that a proportion of the additional cost can be recovered through charging.
In addition, the ‘full cost charge’ for community-based adult social care services has historically been calculated using only the direct cost of procuring services from providers with no allowance for the Council’s administrative costs, such as commissioning and contract management, payment of providers, financial assessment, billing and debt recovery together with their associated ICT costs.
It is proposed that from April 2019 all fees and charges for community-based services will include an additional element to reflect the Council’s administrative costs – either 5% or 10% (reflected in the lower and upper range of savings shown below.)
Anyone required to pay charges for these services is entitled to a financial assessment of their income and savings to determine ability to pay.
Further information will be provided in the draft fees and charges schedule to be published in January.
Services in scope (and not in scope)
Commissioned care services for people supported in the community (not in a care home) – income recovery from those with the ability to pay.
One-off costs (exclude internal support)
Revenue 19/20 £0; 20/21 £0
Capital 19/20 £0; 20/21 £0
Outcomes/impact - non-financial
No other impacts on services anticipated.
Challenges/risks
There is a risk that more self-funders purchase care privately outside the Council’s systems leading to a loss of market intelligence.
Equalities Impact Assessment (PDF, 517KB)
On-going net revenue savings against 2019/20 budget
Gross revenue saving/additional income (-)
2019/20: £135,000 - £210,000
2020/21: £135,000 - £210,000
2021/22: £135,000 - £210,000
2022/23: £135,000 - £210,000
Additional revenue cost (+)
2019/20: £0
2020/21: £0
2021/22: £0
2022/23: £0
Net revenue (-) cost (+)
2019/20: £135,000 - £210,000
2020/21: £135,000 - £210,000
2021/22: £135,000 - £210,000
2022/23: £135,000 - £210,000