Decision ref
0001 2025/26
Decision date
15/05/2025
Portfolio
Adult Social Care and Health
Wards
All wards
Title
Adult Social Care & Health Providers Fees and Rates 2025-26
Summary
This report proposes a range of fees & rates for all care providers for the FY 2025-26 and seeks permission to implement the proposed fees and rates following a period of consultation with the provider market.
Purpose
The purpose of this report is to provide the Director of Adult Social Services with a list of proposed fees & rates based on a single fee rate to be implemented from April 2025 following a period of consultation with the provider market.
The CHC uplift for 2025/26 has still to be agreed by St Helens Place. Information on the 2025/26 CHC uplift will be communicated to providers once this decision has been communicated to the Council.
Several options were modelled to consider the degree of support provided to the market to manage increased costs. The financial implication of each option was considered in the context of the Council’s overall financial position and with reference to benchmarking undertaken with the wider north west region.
Background
The proposed fee increases for 2025/26 range from 4.7% to 8.7% and are based on a single fee rate. It is the view of the Council that this will support in creating a fair sustainable market across the care sector.
The care market in St Helens continues to operate at almost full capacity and the approach to fee setting has considered the balance between occupancy rates and costs, (pay rates, employer’s national insurance contributions (ENIC) and inflation). Pay increases are circa 7% from April 2025, and the average of the inflation indices CPI at November was 3.7%, with rates on an upward trend and increased economic uncertainty. ENIC will increase from April 2025 from 13.8% to 15% and the threshold for ENIC will drop from £9,100 to £5,000.
Several options were modelled to consider the degree of support provided to the market to manage increased costs. The financial implication of each option was considered in the context of the Council’s overall financial position and with reference to benchmarking undertaken with the wider north west region.
In setting a balanced budget commissioners have given consideration to local factors and priorities when making decisions about the use of resources. Whilst St Helens works closely with neighbouring authorities and regional partners, the Council continues to make decisions based on local need. There are a wide range of local factors that make direct comparison challenging and, at times, inappropriate, including the baseline rate and size of the private market. The Council’s rates for 2025/26 benchmark reasonably against those of other north-west authorities.
The consultation exercise commenced on 11th February 2025 and was conducted over a period of 4 weeks and a total of 29 responses were received from across the care provider market. The response rate represents approx. 35% of the market; with the most significant response being providers of care homes (52%).
A copy of the Council's proposed response to provides following the consultation period has been provided with this report.
Although the general feedback indicated that providers would like to see larger increases it is important to note that the Council has invested a further £5.3m in fee uplifts for 2025/26 based on the current levels of activity.
A full list of the proposed fees and rates (including proposed increases to non-statutory services) for approval has been included with this report for information.
Conclusion
The Director of Adult Social Services (DASS) is asked to approve the proposed fees and rates structure for 2025/26. It is the view of the Council that this will support in creating a fair sustainable market across the care sector and encourage a focus on quality. In addition to this the proposed fees and rates have been modelled subject to budget constraints and the financial environment within which the Council operates.
Risk Implications
There is a risk that care providers could approach the Council in year to request uplifts to support inflationary
pressures. In addition to this any requests for fee uplifts from out of borough providers may exceed the
budgetary provision and introduce an additional financial pressure during 2025/26.
Measures to Redress Risk
The consultation exercise provided an opportunity for providers to review the proposed rates and provide feedback in relation to any issues or challenges they feel may impact on their ability to provide care and support. The response to the consultation yielded a low response rate of just 35% of all providers invited to respond. This may suggest that the majority of providers agree with the approach adopted by the Council or did not feel strongly enough to provide feedback. Commissioners will extended the offer to meet with
individual organisations who feel they would benefit from a wider discussion with the Council about the ongoing financial challenges they face. This will be done with a view to working with providers to look at ways they can maximise the funding available to ensure it is being used as effectively and efficiently as possible. Any significant financial risks will be reviewed in partnership with the Finance Business Partner and within the context of the current financial challenges faced by the Council.
Declarations Of Interest
None
Equality Impact Assessment
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More information
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