Agenda item

Report from the Strategic Director of Adult Care, Housing and Public Health.

Recommendations:

That Cabinet:

1. Note the outcome of the consultation.

2. Approve implementation of the Adult Social Care – Charging for Care and Support Policy (Appendix 2) from 1 April 2026

3. Retain a maximum charge for non-residential care, but align it with the standard charge for nursing with dementia support, for those who fund their own care.

4. Introduce a one-off administrative fee for arranging care on behalf of people who fund their own care.

Consideration was given to the report which set out the basis for the proposal to amend the Council’s Charging Policy and provided an update on the Adult Social Care Charging Policy consultation which sought views on a new combined charging policy for residential and non-residential care. The report also outlined the outcomes of the consultation, recommended specific areas for inclusion within the new consolidated charging policy and sought approval from Cabinet to implement the new Policy from 1st April 2026.

The Council had a duty to provide or arrange services that helped to prevent or delay people from developing eligible needs for care and support, as defined in the Care Act 2014, which focused on improving people’s independence and wellbeing. The Care Act 2014 required that, where an individual was provided with residential/nursing care services to meet their eligible needs, a financial assessment had to be undertaken to determine whether they had sufficient resources to pay part or all of the cost of the care or required financial assistance from the local authority. The local authority was required to follow a set process in determining the level of financial contribution which should be made. Where care was provided in the community, the local authority had a discretion whether to charge or not for that service. Where a local authority decided that a charge would be made, depending on the income of the individual, a standardised set process could be used in which the local authority could decide whether certain sources of income would, or would not, be considered.

A person who received care and support in their own home would need to pay their daily living costs including rent, food and utilities, and therefore must have enough money to meet these costs. The charge must not reduce a person’s income below a certain amount. This amount was known as a Minimum Income Guarantee (MIG). MIG rates were set each year by the Department of Health and Social Care and were reviewed annually and adjusted for inflation. The MIG amount depended on a person’s age, marital status, disability status and whether they had dependent children.

The Budget and Financial Strategy for 2025/26 was approved at Council on the 5th March 2025. It included, as part of the revenue savings proposals, a review of the current Non-Residential Charging Policy for Adult Social Care. The review had led to a recommendation to combine the Non-Residential Charging Policy with the Residential Charging Framework into one overarching Adult Social Care Charging Policy. This would enable greater transparency and align with expectations within the Care Act 2014.

The consultation was undertaken on the 2 proposals of:

1.    The removal of the maximum charge for non-residential care, while maintaining the minimum charge of £1, for people who fund their own care.

2.    The introduction of an administrative charge for organising care for people who fund their own care.

The full consultation analysis was attached at Appendix 1. For Proposal 1 ‘Removal of the maximum weekly charge’, a total of 97 responses were received. The majority of respondents opposed the change, with 49% strongly disagreeing and 31% disagreeing. A smaller proportion supported the proposal, with 11% agreeing and only 2% strongly agreeing. Additionally, 7% were unsure about the proposal.

For Proposal 2 ‘Introducing an annual fee for self-funders where the Council facilitates the care package’, there was a total of 97 responses. The majority of respondents opposed the proposal, with 56% strongly disagreeing and 26% disagreeing, indicating significant resistance to the introduction of this charge. Only a small proportion supported the change, with 14% agreeing and 2% strongly agreeing, while 2% were unsure. Overall, feedback showed strong opposition to adding an administrative fee for self-funders.

The option to retain the maximum charge but increase the rate so it aligned with the higher rate of a standard dementia nursing placement (rather than a standard residential placement) was recommended. This was because it retained a maximum weekly charge, offering protection for those with the highest care costs while increasing the cap to better reflect the costs of the care being provided. This ensured contributions remained affordable for most people but fairer overall, as more individuals paid closer to the true cost of their care.

In relation to the administration fee, the option to introduce an administrative charge of £350 as a one-off charge to reflect that most of the work involved in arranging care for self-funders would be at the start of the process was recommended. This would be a one-off fee, until a person’s care changed, requiring a new package of care to be commissioned, at which point they would be charged a further fee.

Resolved:

That Cabinet:

1.    Note the outcome of the consultation.

2.    Approve implementation of the Adult Social Care – Charging for Care and Support Policy (Appendix 2) from 1^st April 2026.

3.    Retain a maximum charge for non-residential care, but align it with the standard charge for nursing with dementia support, for those who fund their own care.

4.    Introduce a one-off administrative fee for arranging care on behalf of people who fund their own care.