Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 19, 2025

Purpose: To approve the proposed fee increase for Adult Social Care providers for the period 2025-2026.

Content: 1.      That the proposed increases in care fee levels for 2025-2026 as set out in Table 1 to ensure sufficiency and sustainability across the external Adult Social Care market be approved.   2.      That increases be approved with effect from 7 April 2025 to align to corporate payment systems.   Table 1 – Proposed Care Fees for 2025/2026   Type of Care Provision Recommendation Current Rate 2024-25 (£) % Increase Proposed Rate 2025-26 (£) Homecare Increase to reflect the cost impact of the National Living Wage (NLW), Employers National Insurance (NI) and Consumer Price Index (CPI) inflation. To be applied to care and support delivered through the City of Wolverhampton Council (CWC)19112 – Home Care – Light Touch Flexible Framework, as well as spot purchased care commissioned outside of the contract. 20.28* (hourly rate) 6.60 21.64* (hourly rate) Reablement 21.68* (hourly rate) 6.60 23.12* (hourly rate) Home Based Respite 19.36* (hourly rate) 6.60 20.64* (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, Employer NI changes and CPI Inflation. 19.36 (hourly rate) 6.60 20.64 (hourly rate) Direct Payments for Adults, Carers and Children’s – Employed Personal Assistant Increase to reflect cost impact of the NLW and Employer NI changes. 14.08 (hourly rate) 9.91 15.48 (hourly rate) Direct Payments for Adults, Carers and Children’s – Self-Employed Personal Assistant Increase to reflect cost impact of the NLW and Employer NI changes. 17.24 (hourly rate) 9.33 18.88 (hourly rate) Individual Service Funds - Dependent on Care Type Aligned to the Supported Living rate. Increase to reflect cost impact of NLW, Employer NI changes and CPI Inflation. 19.36 (hourly rate Dependent on Care Type) 6.60 20.64 (hourly rate Dependent on Care Type) Residential Care – Older People Increase to reflect cost impact of the NLW, Employer NI changes and CPI inflation. All placements are spot purchased rather than through a framework or contract. 592.27 (weekly rate) 6.60 631.40 (weekly rate) Residential Care – Older People with Dementia 636.72 (weekly rate) 6.60 678.79 (weekly rate) Nursing Care – Older People 667.03 (weekly rate) 6.60 711.06 (weekly rate) Nursing Care – Older People with Dementia 716.87 (weekly rate) 6.60 764.19 (weekly rate) Residential and Nursing – under 65 years old Individually Negotiated 6.60 Individually Negotiated Shared Lives Increase fees to reflect the cost impact of the NLW, Employers NI changes and CPI Inflation. To be applied to the CWC21029 – Shared Lives Contract. Long term (weekly rate) Low - 306.32 Med - 358.82 High - 411.32 Arrangement (Arr) Fee  -114.24   Short Break (weekly rate) Low - 411.25 Med - 463.82 High - 516.32 Arr Fee-19.58   6.60 Long term (weekly rate) Low – 326.55 Med – 382.55 High – 438.48 Arr Fee - 121.80   Short Break (weekly rate) Low – 438.41 Med – 494.48 High – 550.41 Arr Fee- 20.93 per night   Supported Living Disabilities Framework Increase fees to reflect the cost impact of the NLW, Employers NI changes and CPI Inflation. To be applied to the CWC19045 – Supported Living for Adults with Disabilities contract and spot purchased care outside of the contract   19.36 (hourly rate) 6.60 20.64 (hourly rate) Supported Living Forensic Framework Increase fees to reflect the cost impact of the NLW, Employer NI changes and CPI Inflation. Applied to CWC20029 – Supported Living Framework for Individuals with Forensic History or Significant Complex Behaviour.   22.88* (hourly rate) 6.60 24.40* (hourly rate) Supported Living Block Contracts Increase fees to reflect the cost impact of the NLW, Employer NI changes and CPI Inflation. Individually Negotiated 6.60 Individually Negotiated Day Care Sessional Rates Increase fees to reflect the cost impact of the NLW, Employer NI changes and CPI Inflation. 36.88 (sessional rate) 6.60 39.32 (sessional rate) Day Care Hourly Rates Increase fees to reflect the cost impact of the NLW, Employers NI changes 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. 19.36 per hour for 1:1 staffing 9.68 per hour for 1:2 staffing 6.46 per hour for 1:3 staffing 6.60 20.64 per hour for 1:1 staffing 10.32 per hour for 1:2 staffing 6.88 per hour for 1:3 staffing   The proposed percentage uplifts have been applied to 2024-2025 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.   3.      That it be noted, engagement had been undertaken with external providers and the feedback received has informed the review amongst other factors such as the increase to the National Living Wage (NLW), changes to Employers National Insurance (NI), Consumer Price Index (CPI) inflation and the legal duties for a sustainable market and setting a balanced budget.   4.      That it be noted, this report would be presented to Fulfilled Adult Lives Scrutiny Panel on 11 February 2025. The Panel’s comments would be fed in verbally at the meeting of Cabinet on 19 February 2025.   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 this report are out of scope for the care and support provider review 2025-2026 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.