FEE NEGOTIATION SURVEY

 

Dear Provider,
We are reaching a pivotal moment in our negotiations with North Yorkshire Council over fee increases for the coming year and we need your help…

Whether you are an existing member of the Independent Care Group or not, we wanted to update you on the latest fee increase that is currently on the table. See below full updated offer (changes are highlighted in red). The NYC summary is still being prepared and we’ll post that when we have it. ICG has been in negotiation with North Yorkshire Council looking to secure inflationary increases for providers on the new Approved Provider List (APL).

 

There is some confusion about inflationary fee uplifts for those on the APL. At a seminar and written in the Q&A document for APL providers there is a commitment to provide an inflationary increase. However, contracts provided to APL members say that any inflationary uplift is entirely at the discretion of the Local Authority, so they are never bound to offer one during the life of the APL. There is also no clear mechanism set out in the contract as to how an inflationary uplift would be calculated. The ICG has made the case that many providers will have submitted their fees on the expectation that NYC would be awarding annual inflationary uplifts.

Currently NYC has stated that there will be 0% increase for all of the APL providers above ACOC for care homes and the ICG is challenging this.

In addition, the offer includes uplift of any legacy contracts (those that were issued at lower rates before the current APL for 2022-27). However, this was already part of a three-year deal agreed between ICG and NYC. The data from NYC suggests that more legacy cases have already moved onto new APL contract rates. Given that, ICG does not believe that providers will have many legacy cases which will receive any uplift, and those that do will be capped at the provider’s APL rate or the lowest NYC rate – whichever is the lower of the two.

We do not believe that the current offer will support the financial sustainability requirement and that it does not cover the 9.8% increase in the National Minimum Wage from April that most employers will have to meet. It is incumbent on the ICG to tell providers that there will be opportunity to apply for grant funding to support those who want to offer services that are in short supply (dementia care for people with complex needs being one such example). It is also important to note that NYC has agreed to work with ICG between April and October to revisit the formula for the cost of care to ensure that inflationary pressures are properly reflected in the calculation of fees for 2025/26.

We have made NYC aware that, in its current form, the ICG Board cannot recommend this offer to members. However, it is up to individual members to make their own decisions, so

…please help us by answering the questions below (whether you are a member or not). Click the link:

https://forms.office.com/e/XQeEqG0kyp

 

Whilst I have your attention…

If you are not currently a member of the ICG I would urge you to join. Social care is approaching a critical moment and for the sake of the vulnerable people we care for it is vital that we are united to campaign for a better deal for the sector. Aside from the fee negotiation we are discussing here, the ICG offers practical support, help and advice to hundreds of care providers in the private and not-for-profit sector across York and North Yorkshire. Care providers are stronger when they are united and by joining us your voice can be heard and added to those working together across our region to deliver high quality care and campaign for improvement to the sector. Join us today…

 

www.independentcaregroup.co.uk