Decision details

Maintaining a Stable Adult Social Care Market in Sheffield

Decision Maker: Co-operative Executive

Decision status: Recommendations Approved

Is Key decision?: Yes

Purpose:

The report sets out the process that the Council has followed to propose fair fee rates for independent sector care home, home care, extra care and supported living providers and people with a direct payment in Sheffield for the financial year 2021-22.

Decision:

11.1

The report sought approval for the recommended increases in fee rates for Council contracted and framework independent sector care homes, home care, extra care, supported living and day activity providers in Sheffield for the financial year 2021-22. The report also sought approval for the recommended increase in Direct Payments for people who choose this means of arranging their own care and support. This report set out the process that the Council has followed and the analysis that informed the recommended fee rates to ensure a sustainable, quality and diverse social care market.

 

 

11.2

RESOLVED: That Cabinet:-

 

 

  1. Approves the investment of an additional £4.2m for care providers delivering care on behalf of the Council to deliver enhanced pay terms for front line workers in 2021/22.This investment has been allocated equitably as a 5.66% increase to the staffing element of the fee rates (above the minimum wage increase of 2.18%) for each of the sectors as set out in the following recommendations:

 

  1. Approves an increase to the fee rate for day activities and standard rate care homes of 4.89% including the additional investment in staffing as set out at recommendation 1 above;

 

  1. Approves an increase to the fee rates for home care, extra care (care element only), and supported living on the Council’s standard contracted and framework rate and to direct payment providers of 4.99%  including the additional investment in staffing as set out at recommendation 1 above;

 

  1. Approves an increase for non-standard residential care rates that are individually negotiated and for council arranged respite care of 1.9% subject to contractual compliance;

 

  1. Approves an increase to the personal assistant rates used by people in receipt of a direct payment of 5.66% based on the additional investment in staffing as set out at recommendation 1 above;

 

  1. Delegates authority to the Executive Director of People in consultation with the Director of Adult Health and Social Care and the Director of Strategy and Commissioning and the Cabinet Member for Children, Young People 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

 

  1. Delegates authority to the Executive Director of People in consultation with the Director of Adult Health and Social Care and the Cabinet Member for Children, Young People 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 this report.

 

 

 

11.3

Reasons for Decision

 

 

11.3.1

In order to develop and maintain a stable adult social care market in Sheffield the Council need to ensure that the fees paid by the Council to providers for adult social care in the city of Sheffield are increased in line with the cost of delivering care in the city including inflationary pressures in 2021/22.

 

 

11.3.2

The impact of the pandemic on the adult social care sector is ongoing and the Council will continue to monitor the costs and pressures facing each type of care provision to support a sustainable, quality and diverse market during a very challenging and volatile time for providers, for people who use services and for the Council and wider health and social care system as commissioners.

 

 

11.4

Alternatives Considered and Rejected

 

 

11.4.1

The Council originally consulted in December 2020 on a proposed fee increase based on a lower increase in fee uplift. Following the feedback from providers and further market analysis, the Council has reflected on the feedback and the risk to the market of the initially proposed uplift and is recommending a higher increase to care home non-staffing costs and the investment of an additional £4.2m into salaries of front line staffing. 

 

 

11.4.2

The Council has considered whether to adjust the care home fee to reflect lower occupancy levels. This option has been discounted however on the basis that some market contraction is required and a more targeted intervention will ensure this is safely managed and protects the balance and continuity of care for those who need it in the city. Adjusting care home fees to reflect average occupancy levels would have very different implications for homes depending on their occupancy with some gaining and others still struggling to achieve viability. A targeted approach enables the Council to intervene to ensure that the inevitable risks associated with the contraction needed to achieve a balanced and sustainable, diverse and quality market can be best mitigated during a period of unprecedented market volatility.

 

 

11.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

11.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

11.7

Respective Director Responsible for Implementation

 

 

 

Executive Director of People Services

 

 

11.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Healthier Communities and Adult Social Care Scrutiny and Policy Development Committee

 

Report author: Joe Horobin

Publication date: 18/03/2021

Date of decision: 17/03/2021

Decided at meeting: 17/03/2021 - Co-operative Executive

Effective from: 25/03/2021

Accompanying Documents: