Agenda item

This report advises the Cabinet Member of the negotiations undertaken with the Independent Care Group on proposals to increase fee levels paid to independent sector residential and nursing homes in 2012-13.  The reports seeks Cabinet Member approval on a fee level increase for 2012-13 and reports on an agreement to undertake a fee modelling exercise to assess a “Fair or Actual Price for Care” to inform subsequent years’ fee levels. 

RESOLVED:             (i)         That the award of an additional 1% inflationary fee          increase to residential and nursing care providers in York, effective from the 1 October 2012, be      approved.

(ii)        That the commitment to undertake an exercise to consider the actual cost of care home fees, and the council’s commitment to give this “due regard” when setting fees for 2013-14 onwards, be noted.

REASON:                  To continue to stabilise the care home market within York, to recognise the consultation that remains ongoing and to recognise the cost pressures currently facing the sector.

The Cabinet Member considered a report which advised her of the negotiations undertaken with the Independent Care Group on proposals to increase fee levels paid to independent sector residential and nursing homes in 2012-13. The report sought her approval on a fee level increase for 2012-13 and also informed her of a commitment to undertake a fee modelling exercise to assess a “Fair or Actual Price for Care” to inform subsequent years’ fee levels. 

The Cabinet Member considered a written representation which had been submitted by the Chair of the Independent Care Group. The statement confirmed that the Group had sought a 6.5% increase and the initial offer of a one percent increase proposed by City of York Council of York Council would not even go half way to addressing the significant cost pressures faced by providers in recent years which included rising heating, lighting and food bills coupled with increases in staffing costs.

The Director of Adults, Children and Education (ACE) confirmed that that lengthy and detailed discussions had taken place with the independent Care Group regarding the proposals and the ICG’s contribution to the process was welcomed.

With regard to Councillor Wiseman’s question as to how the proposed increase in funding would be met, he clarified that the costs would have to be met through existing budgets. Contextually he described how, whilst there was not an increase in the overall number of residential and nursing home placements,  a change had occurred in the balance of placements with more nursing placements (high dependency care). With regard to her question on what strategy would be implemented to cover increases in future years, he advised her that this had already been raised as part of budget discussions to date. He emphasised however that due regard would be given to the agreed fair price for care work but that this would inevitably have to be balanced against other competing priorities.

He stressed the need to maintain high quality, safe and sustainable independent care. He stated that the two percent increase now proposed by City of York Council was at the top end of what was being offered nationally by local authorities, with some, even following judicial review, offering no increase in funding.

The Cabinet Member expressed disappointment that the Chair of the ICG had not been able to attend the meeting. She thanked Councillor Wiseman for her comments acknowledging her concerns over costs and confirmed they would work within the budgets to manage the increase. She advised that they would continue to work with the ICG to take the proposals forward.

RESOLVED:       (i)      That the award of an additional 1% inflationary fee increase to residential and nursing care providers    in York, effective from the 1 October 2012, be approved.

(ii)      That the commitment to undertake an exercise to consider the actual cost of care home fees, and the council’s commitment to give this “due regard” when setting fees for 2013-14 onwards, be noted.

REASON:            To continue to stabilise the care home market within York, to recognise the consultation that remains ongoing and to recognise the cost pressures currently facing the sector.