Decision details

Fees payable for external providers of social care provision

Decision Maker: Corporate Director of Health and Adult Services

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


To approve fees and annual uplift level for 2023/24


The proposed fees for residential, nursing, domiciliary care and community based services have been agreed for 2023/24
(i) That fee increases to care homes for both residential and nursing will be as below:
a) The four Actual Cost of Care (ACOC) rates for 2023/24 will be: Residential 812, Residential/Dementia 854, Nursing 896 and Nursing/Dementia 903.
b) The Cost of Care rate will be implemented for all existing placements by April 2024 where they are currently paid below that rate.
c) For those above the ACOC rate, inflation will be paid at 3% up to £1,200 per week, with no inflation above that.
d) All new placements will be paid the ACOC rate, except in exceptional circumstances and where agreed otherwise.
e) As ACOC rates only apply to placements for over-65s, placements supporting adults under the age of 65 will be paid an inflation rate of 9.2% for those below £1,000 per week and 3% for those above.
f) Specialist residential placements for people over-65 costing less than £1,000 per week will receive 9.2%, while those above will receive 3%.
(ii) An 9.2% increase for Community-Based Support/non-regulated services, including Day Services. This will be rounded up to ensure it is divisible by 4.
(iii) For domiciliary care: 9.2% uplift to all domiciliary care packages below £26 per hour. 3% for those between £26 and £33. No inflation will be paid on hourly rates above £33.
(iv) Increases to supported living care packages will be 9.2%.
(v) 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.

Reasons for the decision:

The Council has a commitment to review fee levels on an annual basis. The Council has always had an obligation to take account of the market pressures and to consult with providers on fee levels but from April 2015 new statutory responsibilities under the Care Act 2014 require the Council to shape and sustain its markets.

Consultation has taken place with providers through the Independent Care Group (ICG) and an agreed way forward is set out in the report.

Alternative options considered:


Publication date: 27/03/2023

Date of decision: 22/03/2023

Effective from: 01/04/2023