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Joint Associate Director of Commissioning - Tim Golby
The award of inflationary uplift for care home fees for older people for 2018/19
Following engagement and formal consultation with the care homes market, the following decisions were taken:
- To award an inflationary increase to the banded fee rates for care homes and care homes with nursing, ranging from 3.4% to 3.9%
- To increase non-banded fees, which are negotiated individually, by 3.38%.
>Devon County Council sets an annual fee rate which reflects the cost of care it expects to pay for care and accommodation of individuals with an eligible need.
The Council has an established financial model which it has used over several years to calculate the cost of care. The essential elements of this model do not change from year to year, but the figures associated with those elements do change to reflect inflation and changes in the National Living Wage and National Minimum Wage.
During February and March 2018, the Council consulted on its proposals. The consultation received limited responses, and all were considered by officers. One issue was considered substantive enough to require a change to the proposed increase: to further uplift the hourly rate element of the fee to allow for all staff to be paid at least the national living wage for age 25 and over, regardless of the age mix of the staff.
The Decision Maker has given due regard to the Consultation Document, the Equality Impact Assessment, the Financial Model, market conditions and all consultation feedback. Following due consideration of these documents, the Decision Maker reached the decision set out above.
1) To carry out a full re-run of the financial model as part of this consultation. This was rejected because the Council and its NHS partners have reviewed their commissioning approach, the result of which was consulted upon at the same time as the inflation proposal and which is detailed in a separate record of delegated decision.
2) To make an award greater than the offer. Other than the increase in the staff hourly rate calculation, this option was rejected as the offer is fair and reasonable and provides for inflationary pressures included in the model.
3) To award no increase in fees from the 2017/18 levels. This was rejected as being unreasonable in light of increased costs being experienced by providers through increases in National Living Wage and National Minimum Wage and inflation.
A copy of this decision and any supporting documentation considered by the Officer taking this decision may also be made available or inspection by the public at the Council’s Offices or posted upon payment of any copying and postage charges. Any member of the public wishing to take up either of these options is asked to please ring 01392 382888 or email: email@example.com