Meeting

Purpose

To seek approval for the proposed amendments, to the annual adjustment mechanism, for the fees and charges rates relating to services provided by Adult Social Care (ASC) for the financial year 2024-25, as well as approval for the future fees and charges annual rate adjustment mechanism.

RECOMMENDED that the Cabinet Member

a.     Agree the following changes to the mechanism for setting the Adult Social Care fees and charges for the financial year 2024-25:

i.     A one-off alignment of fees and charges for City Council clients in In-House Residential and Nursing services to the external market average rates (as defined at paragraphs 5.7 and 5.8).

ii.     A one-off alignment of fees and charges for City Council clients in In-House Older Persons Day Services, to the mid-point between the current daily fee rate and the daily cost of providing the services for 2024-25.

iii.     The alignment of fees and charges for Other Organisations, to the cost of provision of services, together with the introduction of a 15% overhead charge, for the following:

a.     In-House Residential and Nursing Services

b.    In-House Day Services

c.     Supported Living Services at Temple Court and Moorings Way

b.    Delegate authority to the Director of Adult Social Care and in consultation with the Finance Manager for Adult Social Care to adjust the fees and charges for 2024-25 in line with the CPI Inflation Rate at September 2023, or in line with the proposals set out at recommendation (a), (up to a maximum value for full cost recovery) subject to the necessary rounding adjustments highlighted at paragraph 3.2 and recommendation (d).

c.     Delegate authority to the Director of Adult Social Care in consultation with Finance Manager for Adult Social Care:

i.     To adjust annually, (commencing financial year 2025-26) existing fees and charges on the 1st April each year in line with the CPI inflation rate in the preceding September (up to a maximum value for full cost recovery), and subject to (ii) and (iii) below.

ii.     Fees and charges for Other Organisations, will be set at a rate to enable the recovery of the cost of providing the services, together with a 15% overhead contribution rate, for the following:

d.    In-House Residential and Nursing Services

e.     In-House Day Services

f.      Supported Living Services at Temple Court and Moorings Way

iii.     To align the City Council client fee rates, every third year, for In-House Residential and Nursing services to the average external provider rates (based on the average cost of new placements between April and September in the preceding year, adjusted for expected inflationary uplifts in the relevant year). The first realignment will be for financial year 2027-28.

The above will also be subject to the necessary rounding adjustments highlighted at paragraph 3.2 and recommendation (d).

d.    Agree that where it is proposed to amend an existing fee or charge by an amount different to that calculated in accordance with recommendation (c), that the proposal is published within the Members Information Service in advance of the start of the financial year to which the fee and charge relate.

e.     Note that the proposed In-House Residential and Nursing care rates to City Council clients will be significantly less than the current cost of provision of these services and therefore will not fulfil the full-cost recovery principles generally applied by the City Council.

f.      Note that whilst there are references to full cost recovery within this report, the relevant fee rates will be set in advance of the commencement of the relevant financial year, based on the initial budget estimates. This initial budget will include provisional pay-award assumptions for the forthcoming year, which may differ from the final agreed pay award.

g.     Note that the Director of Adult Social Care will bring forward a policy proposal during 2024 on the use of transport that ensures equity for all residents who access transport in connection with meeting care needs. This policy will also contain proposals on how to move closer to cost recovery in charging.