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Decision details

Maintaining a Stable Adult Social Care Market in Sheffield

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The report outlines recommendations to the Council’s Cabinet regarding the fees for adult social care providers in Sheffield for the financial year 2019/20.

Decision:

8.1

The Executive Director, People Services, submitted a report setting out the process that the Council has followed to propose fair and sustainable fee rates for independent sector care home, home care, extra care and supported living providers in Sheffield for the financial year 2019-20.

 

 

8.2

RESOLVED: That Cabinet:- 

 

 

 

(a)

approves an inflationary uplift fee rate of 3.89% for standard rate care homes;

 

 

 

 

(b)

approves an inflationary uplift to fee rates of 4.24% for home care, extra care (care element only) and supported living providers on the Council’s standard contracted and framework rate;

 

 

 

 

(c)

delegates authority to the Executive Director, People Services, in consultation with the Director of Adult Services and the Cabinet Member for Children and Families and Cabinet Member for Health and Social Care, to agree any appropriate and proportionate fee increases requested by recipients of Direct Payments and care providers who are not on the Council’s standard contracted and framework rate on a case-by-case basis;

 

 

 

 

(d)

delegates authority to the Executive Director, People Services, in consultation with the Director of Adult Services and the Cabinet Member for Children and Families and Cabinet Member for Health and Social Care, to agree any appropriate and proportionate fee increases requested by care homes outside Sheffield because cost pressures will vary from place to place; and

 

 

 

 

(e)

delegates authority to the Executive Director, People Services, in consultation with the Director of Adult Services and the Cabinet Member for Children and Families and Cabinet Member for Health and Social Care, to take all other necessary steps not covered by existing delegations to achieve the outcomes outlined in the report.

 

 

 

8.3

Reasons for Decision

 

 

8.3.1

To develop and maintain a stable adult social care market in Sheffield by ensuring that the fees paid by the Council for adult social care in the city of Sheffield are uplifted in line with the cost of delivering care in the city including inflationary pressures in 2019/20.

 

 

8.4

Alternatives Considered and Rejected

 

 

8.4.1

Alternative Option 1: Inflationary uplift of 2.4%

 

This option considered an uplift on all contracts based purely on the Consumer Price Index (CPI) rate for September of 2.4%

 

This option works on the basis that the CPI uplift is applied to all areas of the current fee rate. This would be less than the percentage increase in the minimum wage but as the national minimum data sets show that the average care worker in Sheffield is paid above this rate, then the short fall could potentially be covered.

 

However, there may be an impact on recruitment and retention if wages remain low/unchanged or close to minimum wage and this in turn may also have an impact on business continuity and quality which would be a high risk strategy.

 

 

8.4.2

Alternative Option 2: Inflationary uplift based on public sector pay award and CPI

 

This option would see the current fee rates uplifted based on the public sector pay award and CPI. This option works on the basis that CPI is added to all non-staffing activity and 2% is added to all staffing activity.  This would be less than the percentage increase in minimum wage but the national minimum data sets show that the average care worker in Sheffield is paid above this rate. 

 

This is an even more affordable solution, meaning less will need to be sourced from other provision. However the risk to the market is increased. We know that there are providers who could become unviable and we cannot afford the changes to the market or quality at this time without impacting on the quality of care, the customer experience and the wider health and social care system.

 

 

8.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

8.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

8.7

Respective Director Responsible for Implementation

 

 

 

Jayne Ludlam, Executive Director, People Services

 

 

8.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Healthier Communities and Adult Social Care

 

Report author: Joe Horobin

Publication date: 25/03/2019

Date of decision: 20/03/2019

Decided at meeting: 20/03/2019 - Cabinet

Effective from: 30/03/2019

Accompanying Documents: