Purpose

Providers have requested fee increases for existing placements of children and young people across social care, fostering, independent schools, alternative provision, and short breaks.
Requests were reviewed through the local authority’s price review process by a panel including Commissioning, Finance, and Procurement. The panel assessed each request against budgeted increases, contractual arrangements, and factors affecting placement stability. Market comparisons and placement-level reviews were also completed to assess value and risk.
Where requests exceeded budgeted increases, further discussions and negotiations were undertaken to ensure value for money while maintaining placements.
Providers have justified increases due to cost pressures, including inflation, National Living Wage and National Insurance rises, pension costs, and general cost-of-living increases.

Decision

To finalise the agreement for price increase requests for individual placements for children and young people's packages of support for the 26/27 financial year

Alternative options considered

If the local authority is unable to agree the price increases, placement stability may be at risk. Providers may not be able to continue the contracted provision potentially leading to notice being submitted. This could lead to a breakdown in long standing, stable placements and placement moves.