Content

13.1

The Assistant Director of Care Governance and
Financial Inclusion presented a report which outlined two changes
to the Fairer Contributions Policy which sets out the
Council’s charging arrangements for people in receipt of care
outside of Care Homes. The proposed changes were as follows:
 

Removal of the Maximum Charge. The
maximum charge for non-residential care charges is currently set at
£590 per week and it is proposed that this cap (and the
resulting Council subsidy of care costs for self-funders) is
removed from 6 April 2026 in order that charges to self-funders
reflect the actual cost of care.
Introduction of a £500 per
year arrangement fee, for self –funders, for the contracts,
commissioning and financial work undertaken by the Council on
behalf of full fee payers in relation to non-residential care. This
charge will commence from 6 April 2026 in order that the cost to
t

 

 

The report also proposed a range of updates to
the wording of the policy in order to
bring the terminology up to date and to improve clarity for the
reader.

 

 

13.2

RESOLVED UNANIMOUSLY: That
Adult Health and Social Care Policy Committee:-

 

 

 

a)   
Approve removal of the maximum charge for non-residential Care
Services from 6 April 2026
b)   
Approve introduction of a £500/ year Arrangement Fee to
full-fee payers for work involved in arranging, monitoring and
administering Non-Residential Care from 6 April 2026. This fee
would then be uplifted in line with inflation each year
c)   
approve wording changes to Fairer Contributions policy to reflect
these changes and other updates for benefit changes and
clarifications
Delegate to Officers authority to agree a
phased implementation plan for the individual impacted by proposal
a based solely on income, with the intention of a 3-year phased
implementation plan to mitigate the impacts in this case.
 

13.3

Reasons for
Decision

 

 

13.3.1

These proposals bring Sheffield City Council
in line with standard practice by other Local Authorities and are
reasonable actions to support the financial sustainability of Adult
Social Care.

 

 

13.3.2

The change would mean that the charges people
are asked to pay will better reflect the actual cost of their care.
Removing the subsidy that the maximum charge provides would bring
the policy more in line with the principle of people paying for
what they can afford. It also makes charging for local authority
care more consistent with the cost of other forms of support.
In particular this means that
individuals who approach the council for support are treated more
similarly to those who arrange and pay for their care
privately.

 

 

13.4

Alternatives
Considered and Rejected

 

 

13.4.1

Alternative Option 1: No change to maximum
charge This would leave the council as an outlier in its treatment
of individuals with capital and continue the financial subsidy to
more affluent individuals.
 

13.4.2

Alternative Option 2: Phased implementation A
phased implementation was initially proposed with an increase to
the maximum contribution from January 2026 followed by the full
removal of the maximum charge from April. This was to allow time
for people to make alternative plans. Taking on board feedback from
consultation about the short timescales the removing of the interim
step will allow people more time to adjust to the changes.

 

 

13.4.3

Alternative Option 3: Variable levels of
arrangement fee Some consultation responses proposed a variable
rate for the arrangement fee, linked to the level of support the
individual receives. This is not in line with the guidance which
recommends a flat rate fee. It also does not reflect that the work
that this fee funds is not strongly linked to the size or cost of a
care package but to the number of individuals supported. The key
tasks are monitoring providers, negotiating contracts and brokering
care, these are similar regardless of the amount of care. This
option would also not be transparent when people choose to use
council arranged care as the cost would fluctuate depending on how
much care an individual receives. A single fee gives transparency
and predictability.

 

 

13.4.4

Alternative Option 4: Reduced rate arrangement
fee The
council is entitled to recover costs that the local authority
incurs in arranging care. The Council could choose to subsidise
these costs and charge a lower rate that would not reflect the
actual cost of the work undertaken. However this would mean continued subsidy of full
fee payers.