Fair cost of care and market sustainability

The Department of Health and Social Care (DHSC) asked all local councils responsible for adult social care to survey care homes for older people (65 years plus) and home care services (18 years plus) in their area.

They were asked to survey the costs of providing their services and to arrive at a shared understanding with providers of the local cost of providing care.

This exercise was intended to ensure that people find adult social care fair and accessible.

For the purposes of the exercise, the DHSC consider ‘fair’ to mean the median actual operating costs. This means the amount in the middle of the lowest cost and the highest cost for providing care in the local area (following completion of the exercise).

‘Fair’ also means what is sustainable for the local market. This is, on average, what the DHSC expect local councils to move towards paying providers under the now delayed guidance.

Fair cost of care exercise report

The report into our fair cost of care exercise has now been published.

It follows the guidance of the DHSC and reflects the key principles of consistency, transparency and a partnership approach.

There are 2 fair cost of care exercise (annex B) reports. You can read these below:

• fair cost of care exercise report for 65+ care homes
• fair cost of care exercise report for 18+ home care.

While we are committed to the principle of the fair cost of care, it notes the uncertainty of some of the conditions announced in the recent Adult Social Care Grant funding.

It also notes the uncertainty of future funding for adult social care and will consider the impact of this before deciding next steps.

Market Sustainability Plan

All local councils were required to complete a cost of care exercise and Market Sustainability Plan.

The Market Sustainability Plan enables us to assess and demonstrate how we will ensure local care markets are sustainable as we move towards implementing care reforms.

Read the Market Sustainability Plan.