We are writing with the result of our protracted negotiations with North Yorkshire County Council (NYCC) over the uplift in fees for 2022/2023.
As you know, these are extremely challenging times and providers are facing real difficulties with occupancy levels struggling to return to pre-Covid-19 levels, inflation rising rapidly and fuel and utility costs going up steeply.
We are also aware that the local authority is itself facing tight budgetary constraints.
Against that background, we felt it vital that we get the best possible outcome that we could for our members, and we believe that we have achieved that.
Of course, we always wish it could be more and will continue to campaign for the root and branch overhaul of social care, on a national level, that we passionately believe is long overdue for the sector.
We wish you every success in the coming months.
Kind regards,
Nick Swash, Chief Executive
Mike Padgham, Chairman
Monday 28th March 2022
Dear Member
On your behalf, we have just concluded several months of discussion with North Yorkshire County Council on the uplift for the year 2022/2023.
We are in a very challenging period due to inflation rates soaring and utilities and petrol prices at an all-time high. NYCC budgets are also under great pressure
We believe, considering these challenges that we have achieved a fair result for you the member and you the North Yorkshire resident and business owner.
Over the last five years we have been in the forefront, working with the county council on a a new initiative for care home providers – the Actual Cost of Care (ACOC) or sometimes referred to as the Real Cost of Care (RCOC). The Actual Cost of Care process was informed from the independent analysis of care market costs jointly commissioned by North Yorkshire County Council, York City Council, The ICG and the CCG’s covering the respective areas.
Residential and Nursing
The rates are as set out below:
There will be four ACOC rates and these include an amount for Return on Investment.
Nursing – 819
Nursing with Dementia – 826
Residential – 742
Residential with Dementia – 784
These fees will be introduced on all new contracts from April and reflect an inflationary increase of 5%
For existing packages, the Cost of Care rate will be increased over a maximum of three years. In essence that means that each package would receive 33% of the difference between the current rate and the ACOC rate, reaching full ACOC in three years. ICG is working to reduce this time to two years.
Each year the ACOC will be increased by an agreed inflation level.
For those packages above ACOC, no inflation will be applied. However, a safeguard is in place to ensure they do not drop below the ACOC rate for that year.
ACOC rates only apply to packages of care for over 65s
This is a significant increase in care rates to be paid to providers in NYCC as we move to full implementation of ACOC. For those packages currently receiving the county rates of £592 (nursing) and £599 (residential), they will see an increase in the rate of up to 16% in April 2022 and forecast similar increases in 2023 and 2024.
Non-residential
In 2022 we will undertake a project with NYCC to bring in ACOC for the domiciliary Care sector, which we intend will be implemented in 2023. For this year we have focused on packages where you have been telling the iCG that they are unsustainable and commercially unviable.
Domiciliary Care
The offer for 2022/23 is linked to the UKHCA rate (£23.20 from April 2022) and can be summarised below:
A flat rate increase of £1.68 to contracts currently at or below £21.52 (with increases up to 17% and an average increase of 7.3%) This will reduce by 1p for every 1p currently above £21.52. In effect every package currently between £21.52 and £23.20 will now be at UKHCA rate of £23.20
A flat rate increase of 36p (average increase of 1.5%) for rates currently between £23.20 and £25
A flat rate increase of 20p (average around 0.8%), for rates currently between £25 and £25.40, up to maximum of £25.40
Any rates above this to have 0% inflation, pending the domiciliary care ACOC
Supported Living
Increases to supported living care packages will also be targeted to support those currently receiving lower fee rates. The offer for 2022/23 is summarised below:
5% to those packages currently paid below £19 per hour
3.1% to those above that rate
All future payments will continue to be made four weeks in advance with retrospective reconciliation to support cash flow within the market.
For placements of people in care homes outside of North Yorkshire County Council we will honour an uplift agreed by the host authority where they have undertaken an Actual Cost of Care exercise and will consider individual business cases where there is no Actual Cost of Care exercise in place.
For placements of working age adults in care homes within North Yorkshire County Council area 3.1% will be applied to all residential/nursing placements.
Non-Residential Services
3.1% will be applied for all non-residential services and learning disability residential services. This will include day opportunities.
Finally, we have agreed with NYCC to undertake a review to begin no later than 30 September 2022 to look at the impact of this award on providers and, subject to grant conditions, the distribution of any additional funding from government. This review will also look at those packages receiving the inflation award of 3.1%, such as Supported Living.
Nick Swash Mike Padgham
Chief Executive Chairman
