Purpose

Care and Support Provider Fee Review
2026-2027

Content

1.     
That the proposed increases in care fee levels for 2026-2027 as set
out in Table 1 be approved to ensure sufficiency and sustainability
across the external Adult Social Care market.

 

2.     
That increases be approved with effect from 30 March 2026 to align
to corporate payment systems.
 

3.     
That authority be delegated to the Cabinet Member for Adults in
consultation with the Director of Adult Social Care to approve
modifications/ variations to existing contracts through further
Individual Executive Decision Notices, in line with the legal
requirements under Regulation 72 of the Public Contracts
Regulations 2015.
 
Table 1
– Proposed Care Fees for 2026-2027

Type of Care Provision

Recommendation

Current Rate 2025-2026
(£)

% Increase

Proposed Rate 2026-2027
(£)

Homecare

Increase to reflect the cost impact of the National Living Wage
(NLW) and Consumer Price Index (CPI) inflation. To be applied to
care and support delivered through the CWC19112 – Home Care
– Light Touch Flexible Framework, as well as spot purchased
care, commissioned outside of the contract.

21.64*
(hourly rate)

3.47

22.40*
(hourly rate)

Reablement

23.12*
(hourly rate)

3.47

23.96*
(hourly rate)

Home
Based Respite

20.64*
(hourly rate)

3.47

21.36*
(hourly rate)

Direct Payments for Adults, Carers and Children’s –
Agency Rate

Aligned to the Supported Living rate. Increase to reflect cost
impact of NLW and CPI Inflation.

20.64
(hourly rate)

3.47

21.36*
(hourly rate)

Direct Payments for Adults, Carers and Children’s –
Employed Personal Assistant

Increase to reflect cost impact of the NLW.

15.48
(hourly rate)

4.10

16.12
(hourly rate)

Direct Payments for Adults, Carers and Children’s –
Self-Employed Personal Assistant

Increase to reflect cost impact of the NLW.

18.88
(hourly rate)

4.10

19.68
(hourly rate)

Individual Service Funds - Dependent on Care Type

Aligned to the Supported Living rate. Increase to reflect cost
impact of NLW and CPI Inflation.

20.64
(hourly rate
Dependent on Care Type)

3.47

21.36
(hourly rate
Dependent on Care Type)

Residential Care – Older People

Increase to reflect cost impact of the NLW and CPI inflation. All
placements are spot purchased rather than through a framework or
contract.

631.40
(weekly rate)

3.47

653.31
(weekly rate)

Residential Care – Older People with Dementia

678.79
(weekly rate)

3.47

702.38
(weekly rate)

Nursing Care – Older People

711.06
(weekly rate)

3.47

735.56
(weekly rate)

Nursing Care – Older People with Dementia

764.19
(weekly rate)

3.47

790.79
(weekly rate)

Residential and Nursing – under 65 years old

Individually
Negotiated

3.47

Individually
Negotiated

Shared Lives

Increase fees to reflect the cost impact of the NLW and CPI
Inflation. To be applied to the CWC21029 – Shared Lives
Contract.

 

Arrangement fees will also be uplifted by the same percentage.

326.55 –
550.41
(weekly rate)
Care costs
only
 
 

3.47

337.89 –
569.52
(weekly rate)
Care
costs only

Supported Living Disabilities Framework

Increase fees to reflect the cost impact of the NLW and CPI
Inflation. To be applied to the CWC19045 – Supported Living
for Adults with Disabilities contract and spot purchased care
outside of the contract.

20.64
(hourly rate)

3.47

21.36
(hourly rate)

Supported Living Forensic Framework

Increase fees to reflect the cost impact of the NLW and CPI
Inflation. Applied to CWC20029 – Supported Living Framework
for Individuals with Forensic History or Significant Complex
Behaviour.

24.40*
(hourly rate)

3.47

25.28*
(hourly rate)

Supported Living Block Contracts

Increase fees to reflect the cost impact of the NLW and CPI
Inflation.

Individually
Negotiated

3.47

Individually
Negotiated

Day
Care Sessional Rates

Increase fees to reflect the cost impact of the NLW and CPI
Inflation.

39.32
(sessional
rate)

3.47

40.69
(sessional
rate)

Day
Care Hourly Rates

Increase fees to reflect the cost impact of the NLW and CPI
Inflation. Ensure that the rate is consistent with the supported
living rate and proportionate to 1:1 1:2 1:3 staffing ratios.

20.64 per hour for
1:1 staffing
10.32 per hour for
1:2 staffing
6.88 per hour for
1:3 staffing

3.47

21.36 per hour for
1:1 staffing
10.68 per hour for
1:2 staffing
7.12 per hour for
1:3 staffing

 
The
proposed percentage uplifts have been applied to 2025-2026 rates
and rounded up so that hourly and weekly rates are divisible by
four and seven respectively. This is to allow corporate systems to
accurately and correctly facilitate payment to external providers.
Actual rates would be communicated with each individual provider as
part of implementation.

 

*This is the current maximum rate. Where providers have tendered
lower than this rate then the same percentage and rounding will
apply.

 

4.     
That it be noted, engagement had been undertaken with external
providers and the feedback received had informed the review amongst
other factors such as the increase to the National Living Wage
(NLW), Consumer Price Index (CPI) inflation and the legal duties
for a sustainable market and setting a balanced budget.

 

1.     
That it be noted, any proposed care fee increases would create an
ongoing expectation to continue paying fees at this new minimum
level.

 

2.     
That it be noted, all other care contracts not explicitly referred
to within the report, are out of scope for the care and support
provider review 2026-2027 and therefore, any price adjustments to
such contracts are managed through separate mechanisms.

 

3.     
That it be noted, new contracts, including re-tendering, would
include indexation clauses which would set out the mechanism for
adjusting prices throughout the contract period. Indexation may
include linking prices to changes in the NLW and indices for
inflation, to be determined based on the specific nature of
services being procured.
 

4.     
That it be noted, ensuring quality of provision had been factored
when considering proposed care fee increases, which would be
continually managed through our quality assurance processes.