Agenda item

(To receive a report by Alina Hackney, Head of Procurement – People, which invites the Committee to consider a report on Residential Care and Residential with Nursing Care Usual Costs, which is due to be considered by the Executive on 1 March 2022. The views of the Committee will be reported to the Executive as part of its consideration of this item)

Consideration was given to a report by the Head of Procurement – People, which invited the Committee to consider a report on Residential Care and Residential with Nursing Care Usual Costs, which was due to be considered by the Executive on 1 March 2022.

The Committee received a presentation, which highlighted the following in relation to the report:

• An overview of the Learning Disability Service, which had an annual total spend of approximately £125m per year, being one of the council’s highest spend and risk areas
• Details of the programme of review for the service
• Details of the findings from Independent review
• Details of cost modelling and market engagement
• The outcome of the review of the service

The ultimate aim of the programme was to establish a new set of contracts for residential services that were both affordable to the Council, and met the Council's legal duties, along with the necessary changes and improvements that would allow for successful operation of services over the next contract duration.

It was recommended that a Usual Cost be be set for the next 12 months taking into account the likely effect of changes to providers' costs, both National living Wage and forecast inflation to address non-pay costs. Given the volatility of market cost of care following the pandemic and in lieu of full details of the anticipated social care reforms, to help ensure the level of risk to the residential market was reduced and provide assurance about future income from the largest single purchaser of such care in Lincolnshire (the Council), a three-year contract with an annual rate review for years two and three was recommended to avoid Usual Costs losing pace going forward

The Committee supported the recommendations to the Executive and during the discussion the following points were noted:

·       Setting the fee rates for one year from 1 April 2022 was supported, on the basis of the present climate of uncertainty and the need to let the market settle.

·       Providers were able to charge above rates that had been set, which would require a third party top up.

·       The exploration of block purchasing (paragraph 6.3.1) was supported, and it was understood the use of block purchasing was more likely to focus on providers of specialised services, as this would be means of securing places for Lincolnshire residents in a local setting.

·       There was concern that with the rate of inflation (4%) used in the calculation of the revised rates may not be adequate, but it was understood that the care sector would approach the Council if a higher inflation rate were to persist.

·       It was confirmed that a number of the care providers also provided day care services.  The Council were looking at how they could further support local providers with establishing day care services.

·       The hardship fund (recommendation 6) of £1 million was supported by the Committee as a means of supporting increased utility and insurance costs from providers and was also supported by the Chair of the Lincolnshire Care Association, Melanie Weatherley.  However, some members of the Committee questioned whether this level of funding would be able to meet all the requests for funding from providers.  

RESOLVED:

1. That the recommendations to the Executive be supported;

2. That a summary of the comments made by the Committee be reported to the Executive as part of its consideration of this item.