Derbyshire council is increasing care funding and fees to address inflation and wage pressures

The county council cabinet voted in favour of the rate increases after a meeting, on March 14, at its headquarters at County Hall, in Matlock, after it was recognised that its commissioned care homes and home care services are struggling with pressures from inflation rates and the need to meet a living wage for staff.

Independent sector residential care homes and nursing homes will benefit from an increased rate of 7.9per cent each week from April 1, and home care rates will increase from 6.1per cent to 8.1per cent for different services to help providers meet costs.

Concerning care home funding, Council Leader, Cllr Barry Lewis, said: “It’s a pressure upon the finances with an increase of 7.9per cent a week and we can see these figures expressed in the recommendations.”

Derbyshire County Council has contracts in place with over 140 independent sector care homes in Derbyshire for older people which from January provided support to approximately 2,331 people including 725 nursing placements and 1,606 residential placements.

The council has stated that the care market has experienced a challenging 12 months with inflationary increases on business costs and with greater demands from hospital discharges.

It also stressed the council has a duty to ensure there is a sustainable and affordable social care market and this means establishing acceptable fee levels that providers will receive so there will be enough funding for them to be able to continue providing care commissioned by the council.

Independent sector residential care homes and nursing homes will soon be paid an increased rate of 7.9per cent per week, and specialist care home placements can expect to see an inflationary payment of up to 7.9per cent where there is evidence of inflationary pressure.

The cabinet also set a rate of £53.18 per day – increased from £49.70 per day – for a day care placement in a care home, and it agreed upon an inflationary payment of up to 7.9per cent for day care placements on the council’s Day Care Framework where there is evidence of increased costs.

There will also be an increase in the rates for care home in-house day care and residential care of 7.9per cent and an increase in the dementia fee rate by 7.9per cent per week.

Demand for home care services from those aged 65 and over has also been increasing and an average of 4,119 people were supported to live at home with home care every month during 2015 and this increased by 24.5per cent to 5,275 during 2023.

The latest figures from February show this home care support is currently being commissioned from 55 independent sector home care providers and this number is expected to increase from April 1 when the council’s new Framework for Home Care Services commences.

To meet these growing pressures and costs, the independent sector home care hourly face-to-face fee rates will increase by 8.1per cent and travel and visit rates will increase by an average of 6.1per cent representing a combined increase of 7.4per cent on the overall independent sector home care budget.

There will also be an increase of 7.4per cent for the fee rate for in-house home care and extra care provision, and there will be an inflationary increase up to a 7.4per cent rate for specialist independent sector home care where there is evidence of inflationary pressures.

In addition, The Derbyshire Home Care Association has asked that the council reviews its current home care model to be more in line with other local authorities so it will be more accurate in demonstrating the costs to providers.

The council stated it aims to continue working with home care providers to review the current fee model and to make changes if it is decided that these would have a positive effect on service availability and quality.

In the meantime, care home providers have supported the announced increase in the National Minimum Wage but they have also been urging councils to pay above the minimum wage for staffing to assist them with recruitment and staff retention problems.

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to, but the council has also been considering the National Living Wage which is higher than the National Minimum Wage and this is currently paid to workers aged over 23.

The National Living Wage is due to increase by 9.8per cent for staff aged 25 and over from April 1 – from £10.42 per hour to £11.44 per hour – and from April this is also expected to be extended to 21 and 22-year-old employees.

Concerning care homes and to reflect the National Living Wage, the council decided to apply a 9.8per cent increase on the calculation of all staff costs, and its plans to increase a range of care home fee levels by 7.9per cent is all expected to help providers to pay staff the equivalent of the National Minimum Wage from April.

In addition to also reflect the National Living Wage increase, the council has decided to increase the calculation of hourly home care wages by the standard National Living Wage increase of £1.02 per hour which will also be for those aged 21 and 22.

Cllr Natalie Hoy, Cabinet Member for Adult Care, said the council has increased the funding rates because it is required to meet and maintain sustainable care home and home care markets that reflect inflationary pressures and wages.