Care sector calls for rise in base fee rates that local authorities pay for services

The CEO of Care England says the financial impact the Covid-19 pandemic is having on the care sector is unprecedented

person with PPE gown putting on surgical gloves

Care England, the largest representative body of independent adult social care providers, has written to all Directors of Adult Social Services regarding fee rates for care providers stressing that in addition to the human cost that the pandemic has had upon care homes, the financial impact upon providers has been unprecedented.   

Professor Martin Green OBE, Chief Executive of Care England, says,

“We are deeply concerned with the feedback we are receiving from many of our members about local authorities who are proposing to make very little increases if any to the base fee rates they pay for the care services that they commission.

“This impact, combined with other inflationary pressures has created the perfect storm, placing the care home market, home care and supported living settings in an incredibly precarious financial position”.

A duty to ensure adequate fee levels
Local authorities have a legal obligation to promote the efficient and effective operation of the care markets in their localities to ensure that people have a variety of providers and services to choose from.

They must also have regard to the sustainability of the market, which includes a duty to ensure adequate fee levels.

Limited support during panedemic
The pandemic has had a significant and immediate impact upon providers’ costs of care for example and whilst there has been some financial support provided to care providers, it has been limited and has not been provided on an indemnity basis.  

This has left providers having to absorb the financial shortfall on their increased costs often with reduced occupancy. 

Green: Care homes one the most affected front lines
Martin Green continues,

“The current Covid-19 pandemic has, and continues to have, a catastrophic impact on all elements of our society.  

“Care homes have been recognised as one of the front lines and have sadly been one the most affected despite the measures that have been put in place by both providers and central government.

“We hope that Directors of Adult Social Services will work with the sector to ensure that it can recover and be in the best position possible to provide quality care to those in need”.

News OnTheWight has contacted the Isle of Wight council to ask whether they have proposed an increase to the base fee rate for care providers since the beginning of the pandemic, and will update once we hear back.

News shared by Care England, in their own words. Ed

Image: Jernej Furman under CC BY 2.0

Monday, 8th February, 2021 7:59am



Filed under: Island-wide, Isle of Wight Council, Isle of Wight News, Top story

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3 Comments on "Care sector calls for rise in base fee rates that local authorities pay for services"

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For some unknown reason, Local Authirities get a ‘reduced rate’ when they are paying for someone’s care in a Nursing or Residential home. The reduced rate that the Local Authority pays, is then subsidised by those residents who are ‘self funding!’ To be classed as self funding, residents will have funds to be able to pay for their own care. Many have had to sell their family… Read more »
Angela Hewitt
My thoughts exactly Alisonjane. It is my belief that ALL care homes should be run on a not for profit basis. Government should take back control. Current inspection bodies are pretty useless. The elderly and vulnerable are being ripped off at the Government’s behest. From experience with my Mum, be afraid, be very afraid of getting old and ending up in a so called care home. Staff… Read more »
Agree completely with the previous two comments. The Residential and Nursing homes for the very people who helped create that system of Care by dutifully paying their taxes through out their working lives are seen as ‘an expensive inconvenience’, sic, by successive governments of All political persuasion. The fact that such people are human beings and thus as of right should be properly cared for in the… Read more »