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Decision details

Adult Care 2024/25 Care Provider Inflationary Uplift

Decision Maker: Executive Director: Adult & Communities

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

It is necessary to take this urgent decision to ensure that care providers delivering Adult Social Care services receive notification of uplifts before the start of the new financial year (2024/25) on the 1st April 2024.
Finance and ASC officers have recognised the flawed nature of prior decision-making arrangements, and are looking to swiftly remedy the situation with an OED this year. With this learning in mind, a more robust process will be instituted for next year to authorise release of the annual uplift following budget approval. An OED will not be required next year to expedite the necessarily swift turnaround.
This year, Full Council budget authorisation was delayed until 29 February 2024. In addition, officers have needed additional time to recalculate prices in line with the new Single Framework capped rates.

Decision:

To allow the Executive Director to allocate the annual inflationary uplift allocation of £7.619m plus use of Market Sustainability and Improvement Grant on third party payments to Adult Social Care providers. The average uplift works out just over 4% in line with inflation calculations, working within the ASC contractual framework.

Alternative options considered:

Option 1 – explored the option to pay higher uplifts in line with neighbouring authorities and considering cost increases to care providers, but rejected going beyond current inflation as budget is insufficient and risk too high of being unable to make the necessary savings in year to be able to offset and balance the budget.
Option 2 – explored the option to pay less than current inflation but rejected as risk of destabilising care market and potential risk to meeting statutory duties towards people who need help and support.

Publication date: 27/03/2024

Date of decision: 26/03/2024