Agenda item

(Indicative timing: 3.15pm – 3.45pm)

The Panel had received a Report which outlined the Government’s Adult Social Care Reforms and the potential impact in Worcestershire.  In summary, the Government had announced that a ‘Care Cap’ would be introduced from October 2023, meaning that no one in England would spend more than £86,000 on their personal care over their lifetime. 

In advance of this, the County Council would need to establish a ‘Fair Cost of Care’.  This was being developed with finance and audit colleagues and scheduled for agreement by Cabinet before submission to Government by mid October.  One development since the publication of the Agenda was that people already paying for their own care would need to wait an additional 18 months before applying for the fair cost of care.

Members asked a range of questions which were responded to as follows:

·         A care home placement in Worcestershire cost in the region of £700 - £800 per week, but this varied dependent on the level of care required

·         The process in developing a Fair Cost of Care was extremely complex with huge implications for the Council and providers.  Local Authorities nationally had generally accepted the social care reform objectives, however had collectively expressed that the central government money earmarked to enable councils to pay for the fair cost for care was inadequate

·         Nationally, it was predicted that an additional 4,300 social work staff would be required to support the process and the Council was already investigating what skills would be required to fulfil requirements, for example what specific work required a qualified social worker or what skills were required to undertake other tasks

·         Nationally, workforce pressures remained and all local authorities were seeking the same skilled staff.  In addition, levels of demand across domiciliary care had increased by over 4% each year and the NHS Recovery Plan placed far more pressure on domiciliary care

·         The Cabinet Member with Responsibility (CMR) for Adult Social Care reminded Members of the National Insurance levy which was being used to reduce the NHS backlog and at some point in future would be used to support adult social care

·         The Worcestershire Care Market had been stable, however, new pressures across residential and domiciliary care, including rising utility bills, the cost of fuel and general inflation were evident.  Furthermore, residential homes were currently at around a 20% vacancy rate.  COVID-19 grants, amounting to £31.5m across all providers, had masked the financial situation, however as there were no further grants available, business pressures were foreseen

·         Homes usually aimed for no more than a 10% vacancy rate, however the number of people entering residential care was decreasing.  A large amount of disruption was predicted if Care Homes became unviable as residents would need to be moved.  It was thought that a purpose-built facility may be cheaper to maintain and run than an older smaller property and new settings continued to open around the County

·         It was suggested that not all providers had a clear understanding of the implications of the Fair Cost of Care, especially for residents who were self-funders and would be entitled to ask to pay the Fair Cost of Care.  To raise awareness, the Council was developing a communication plan which would also be shared with Members

·         In relation to the collection of commercially sensitive information by Councils to determine a Fair Cost of Care, providers had been invited to submit sensitive information on the assurance that it would only be used for the specific purpose and not made public.  No guidance had been given on what level of profit was reasonable for an organisation, however, a home care association in October 2021 had published that a 3% profit margin was required in order to keep a business sustainable  

·         The Panel was advised that the implications of the Care Cap on Councils was massive and it was suggested that it would be 4 to 5 years until the situation settled.  It was important that consistent communication was provided to both residents and providers

·         With the support of the CMR, a Member Briefing on the reforms would be arranged

·         It was agreed that the Panel would schedule a review at an appropriate time in the future.