Decision Maker: HMR Integrated Care Partnership Committee

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 30, 2025

Purpose: To give an update on the outcomes from the cash budget policy and funding review consultation, and to agree if proposals should be adopted.

Content:  Resolved:    1.     That the Adult Social Care Cash Budget Policy Post-Consultation Report be endorsed.   2.     That the Adult Care Cash Budgets Policy, as set out in Appendix 1 of the report, applicable from December 2025, be approved.   3.     That funding for personal assistants, procured via a cash budget be approved.  £16.67 per hour for new recipients from December 2025. Existing recipients would transition to £16.67 per hour from April 2026, and a transitional funding payment of £3.00 per hour would be payable up to April 2027 for existing cash budget recipients using their cash budget to pay for a personal assistant.   4.     That the following approach in relation to the reinvestment of savings be approved:   In recognition of the feedback received during the consultation, a portion of the savings generated through changes to the funding model be allocated to a dedicated fund to support recipients who, due to the complexity of their needs, were required to pay a Personal Assistant above the Real Living Wage. The supplementary funding would be applied on a case-by-case basis, subject to robust governance arrangements. The approach ensured that individuals with the most complex support needs were not disadvantaged by the standard funding model, while maintaining transparency and accountability in the allocation of additional resources. £260,000 of the savings would be reinvested into the fund each year.   5.     That the procurement of the Personal Assistant Register via the G-Cloud framework, for a contract period 3 +1+1 (5 years) at an estimated value of £115,000, be approved.   6.     That the service commission a provider for the provision of employer liability insurance for people using their cash budget to employ a Personal Assistant via a compliant Light Touch procurement route, for a contract period 3+1+1 (5 years) at an estimated value of £156,800 be approved.   Reasons for decision The Adult Care Cash Budget Policy had been developed to provide guidelines and a framework within which cash budgets operated within the Adult Social Care directorate to ensure consistency of experience and processes. The use of cash budgets had changed over recent years with more people now using the funding to employ their own personal assistant rather than purchasing care from an agency.   Following feedback from users of cash budgets it was felt there was a need to change the way support was funded and provided via a cash budget to improve equity, and to support people better with their employer responsibilities when using cash budgets to purchase their own care.   The proposed arrangements included a commitment to reinvest a proportion of the savings generated through the changes to the funding arrangements. The reinvestment would be used to strengthen the support offer for recipients, particularly those employing Personal Assistants. Key enhancements included the development of a Personal Assistant Register to improve recruitment and quality assurance as well as an improved training offer, which helped to ensure Personal Assistants were equipped with the skills and knowledge required to deliver safe and effective care. Investment into digital infrastructure was also planned, including the exploration of online chat facilities to provide real-time support and guidance to recipients. These measures aimed to improve the overall experience and outcomes for individuals receiving support via a cash budget, while also promoting sustainability.   The changes to the funding for Personal Assistants meant the policy was more equitable and that people funded by the Council to provide care and support were funded at the Real Living Wage.   Transitional funding was proposed to give people who draw on care and support time to adjust their contractual arrangements with staff where payments were not currently in line with the proposals.  A three-month public consultation had been undertaken regarding the new proposals and 56 responses were received, mainly supporting the changes (full details were set out in section 11 and Appendix 2 of the report).   The route of the Personal Assistant Register procurement will be via a direct award through the G-Cloud framework. The Register would include a list of vetted suppliers whereby cash budget customers could choose who they wished to appoint on the framework. The G-Cloud 15 framework was managed by the Crown Commercial Service and was designed to help public sector bodies procure cloud-based services including hosting, software, and support. The route of procurement avoided the need for lengthy procurement processes as they were competitively tendered so that councils could quickly appoint suppliers without repeating full procurement cycles. This was a transparent process compliant with the Procurement Act 2024 and promoted value for money through rigorous supplier vetting. The framework would offer a compliant and scalable procurement route. Due to the low value of the framework, it was considered as low risk, and this was the recommended option of STAR legal and procurement team.   The route for the provision of employer liability insurance would go via a light touch approach via a direct award. These routes allowed contracting authorities to use more flexible procedures when procuring services that fell under the light touch category. Due to the nature and low value of the contract there were no frameworks available - so the service will go out to market via a procurement exercise and would be supported by STAR procurement and the Council’s legal team. It was anticipated the light touch procurement exercise would commence in November 2025.     Alternatives considered Not to review the Cash Budget Policy – this option was not recommendation, as it was considered best practice to regularly review the Policy to ensure it met legal obligations and the key principles upon which it was based.   The last review of the Policy had been undertaken in 2015.  Not reviewing the Policy could detrimentally impact the reputation of the Council.