Residential Charges

The Local Government Association recommends that charges for services should be based on the full cost of providing the service.  Accordingly, the following cost elements have been included:

a) the recovery of all direct costs, e.g. pay, premises costs and supplies and services;

b) an allowance for inflation in relation to pay and price rises during 2004-05;

c) a notional allowance for management costs and overhead expenses (7.9%);

d)a capital charge, which represents a notional annual charge (asset rental) for the capital assets used in providing the service.  These have been computed in accordance with the CIPFA statement on capital accounting and are based on capital value of assets.

This forms the basis of the recommended charges to Other Local Authorities in 2004-05.

Charges made to Clients in Residential Accommodation

Part III of the National Assistance Act 1948 requires charges to clients in residential accommodation to be based on the full cost of the accommodation provided.  Full costs have, therefore, been calculated based on the methodology outlined above.

The recommended weekly standard charges for residential accommodation for the elderly, learning disabled and physically disabled are set out in the table above.  The recommended standard weekly charge for homes for the elderly will also be applied to people accommodated on a long-stay basis in Devon’s community care resource centres.

In considering the proposed residential charges, it must be remembered that the actual amount paid by residents is dependent upon their assessed ability to pay.  This means that only those residents assessed as being able to meet the full cost of their residential accommodation and other Local Authorities where the residents are their financial responsibility will be expected to meet the full weekly cost.

Based on the current number of residents that fall into the above categories (37 older people) the additional income generated, over and above the inflation contingency requirement, that the recommended weekly charge will generate is £24,750.

Hire of Premises

As a service to the community, many premises with rooms and other facilities not in constant use by the Directorate’s staff and/or clients are offered for occasional hire.  Where the aims and objectives of groups and organisations are similar or complimentary to those of the Social Services Directorate, the letting of premises to them continues to be free of charge, except for any additional costs necessarily incurred.

Respite Residential Care

The maximum charge for respite residential care was introduced in 1998/99 and is applicable for the first 4 weeks respite care in the financial year.  This charge is subject to financial assessment to determine the exact contribution from the service user.   Based on the recommended charge of £230.00 the additional income, over and above inflation, that will be generated is in the order of £2,000.

Sowton Gypsy Site

A major programme of refurbishment and investment funded through the Gypsy Sites Refurbishment Grant has been completed within the last financial year.  A revaluation of the newly refurbished site has led to a recommended weekly charge of £45.00 per week, which if implemented in full would result in an 80% increase in charges between years.  It is recommended that the increase is phased over two financial years thereby reducing the financial impact on the Gypsy and Travellers community but limiting the potential income gain to the Authority to £4,680 in 2004-05.

Non-residential Charges

In response to the Government’s “Fairer Charging” initiative, which provides a framework for charging for non-residential social care services that removes inconsistencies and variations in charging for care, the Authority has introduced charges for services based on a financial assessment of the service users ability to pay.

A number of key principles underpin the charging regime for non-residential services:

• The Authority seeks to maintain income levels from non-residential services across Devon;
• The Authority adopts a fair and consistent approach across all adult client groups which does not discriminate on the basis of age, gender or disability;
• The Authority charges for all eligible non-residential services received in a care package arranged or provided;
• The Authority will charge the subsidised cost of services following the outcome of an individual financial assessment;
• The Authority provides information, advice and alternative options to individuals to maximise personal income and choice over services.

These principles have been maintained in the computation of the proposed charges for 2004-05 for non-residential care services, which include:

• domiciliary care;
• day care;
• community meals, including the frozen meals direct delivery service;
• respite residential care;
• other community services

Day Care Services

The assessed charge for day care services, £5.00 per day or part thereof, will come into effect from 14th June 2004.  It is, therefore, proposed that no further increase is levied to this charge in 2004-05 or the additional standard daily flat rate charges of transport at £1.00 per single trip and £3.00 per meal.  Increases above inflation may be necessary in 2005-06 to defray the additional costs incurred in providing these services.