Decision details

Fairer Contributions Policy - Maximum Charge

Decision status: Recommendations Approved


Update to the Fairer Contributions Policy, to uplift the maximum charge for people in receipt of non-residential care.



(a) to set the maximum charge for non-residential care in Sheffield at £424 per week from September 2021; which is 80% of £530 per week, the current standard residential charge in Sheffield; and


(b) to uplift the maximum charge for non-residential care each year so that, as the standard residential rate is uplifted to take account of inflation and the rising cost of care, the maximum charge is maintained at 80% of the standard residential rate.


Reasons for the decision:

Setting a maximum charge as maximum percentage of care home charges in the local area is directly in line with Care Act statutory guidance.


This approach ensures that whilst a link exists between the maximum charge for non-residential care and the standard residential care rate, the link is loose enough to reflect the fundamental differences between residential care and non-residential care.


This approach takes account of the consultation feedback this year which was a significant increase to the maximum charge as proposed at the time would not be acceptable and that a future maximum charge should take account the additional cost of living for people not in residential care.


Calculating the maximum charge in this way is simple, predictable and transparent.


Alternative options considered:

A number of approaches could be used for determining the maximum charge, as follows:-


Standard residential rate

This option was proposed in the consultation but was challenged on the basis that it didn’t take account the cost of living in non-residential care and it would see an increase which was felt to be unacceptable.


Care Home rate less a cost-of-living deflator

  • This takes the benefits of option 1 while including a mitigation to cover the different costs of living between the two environments
  • One issue with this is identifying what value to adopt as the deflator. Cost of living figures set by Government for other purposes have significant variability depending on circumstances
  • A specific deflator would also be subject to challenge as it would not take into account the other tangible and intangible differences between residential and non-residential care


A flat figure

·       This option would fully remove any link between the maximum charge and the residential care rate which would also eradicate the risk of challenge from comparing different forms of care

·       This option would create a cap with no link to care costs and which would therefore feel arbitrary and which would move the Council away from the statutory guidance



Publication date: 10/08/2021

Date of decision: 03/08/2021

Effective from: 17/08/2021

Accompanying Documents: