Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: May 19, 2025

Purpose:

Content: RESOLVED:   Cabinet agreed the following changes to the non-residential care charging policy in Hackney to go forward for public consultation:   1.  To remove the maximum charge cap (currently £250 pw)   2.  To move from charging based on 92% of the cost of service to 100%   3.  To move from 75% of assessable income taken into account to 100%   4.  To consider whether it is worth reducing the amount of disability benefits we automatically disregard from the financial assessment of client contributions from 25% to 20%   Cabinet agreed to publicly consult on a decision to move LBH’s Minimum Income Guarantee calculation in line with DHSC minimum rates.   Cabinet approved one new charge, a flat rate arrangement fee of £162.65 for self funders who request that LBH set up or make changes to a package of care for them on their behalf, for public consultation.   REASONS FOR DECISION   It is not financially viable for LBH to continue to offer its existing discretionary enhancements to the nationally mandated Minimum Income Guarantee (MIG) and discretionary disregards to the financial assessments (FA).   LBH is an outlier in that it has a particularly generous financial assessment calculation, but  given budgetary pressures, it is advised that Cabinet review the charging policies in the context of rising demand, complexity and cost in adult social care.   The Care Act 2014 allows for local authorities to apply an ‘administration’ or ‘arrangement’ fee to cover the cost of arranging care and support for individuals with eligible needs and assets above the upper capital limit (also known as ‘self funders’) who has asked the local authority to arrange their care and support on their behalf. Many local authorities have implemented a fee.   DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED   To do nothing and not review the Care Charging Policy would mean LBH would fall further out of line with the standard national practice on care charging, and with rising costs, would find its budget gap growing over time, which is not a viable option. By reviewing Hackney care charging policies and moving in line with common practice in England, all chargeable residents will pay towards their cost of care, in line with the more disposable income a resident has. The work required to run the data collection and financial modelling for the Care Charging change proposals outlined in this paper was considerable, because of the considerable length of time since the previous review of the policy. It is therefore recommended that the policy is reviewed annually in the future to avoid the need to make multiple significant changes at once.   To do nothing would mean our Care Charging Policy would not be made more equitable, as the current disregards in the LBH Financial assessment benefit  those with higher capital and income the most as they have more of their finances disregarded (e.g. max charge cap at £250pw significantly reduces the cost of care for those who can afford to pay more). By reviewing Hackney care charging policies and moving in line with common practice in England, all chargeable residents will pay towards their cost of care, in line with the more disposable income a resident has.   If LBH were not to implement the self funder arrangement fee, LBH would miss out on our right as per the Care Act 2014 to recover some of the cost of setting up care packages for self funders and would further add to the current budget deficit.