Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 18, 2026

Purpose: Care and Support Provider Fee Review 2026-2027

Content: 1.      That the proposed increases in care fee levels for 2026-2027 as set out in Table 1 be approved to ensure sufficiency and sustainability across the external Adult Social Care market.   2.      That increases be approved with effect from 30 March 2026 to align to corporate payment systems.   3.      That authority be delegated to the Cabinet Member for Adults in consultation with the Director of Adult Social Care to approve modifications/ variations to existing contracts through further Individual Executive Decision Notices, in line with the legal requirements under Regulation 72 of the Public Contracts Regulations 2015.   Table 1 – Proposed Care Fees for 2026-2027 Type of Care Provision Recommendation Current Rate 2025-2026 (£) % Increase Proposed Rate 2026-2027 (£) Homecare Increase to reflect the cost impact of the National Living Wage (NLW) and Consumer Price Index (CPI) inflation. To be applied to care and support delivered through the CWC19112 – Home Care – Light Touch Flexible Framework, as well as spot purchased care, commissioned outside of the contract. 21.64* (hourly rate) 3.47 22.40* (hourly rate) Reablement 23.12* (hourly rate) 3.47 23.96* (hourly rate) Home Based Respite 20.64* (hourly rate) 3.47 21.36* (hourly rate) Direct Payments for Adults, Carers and Children’s – Agency Rate Aligned to the Supported Living rate. Increase to reflect cost impact of NLW and CPI Inflation. 20.64 (hourly rate) 3.47 21.36* (hourly rate) Direct Payments for Adults, Carers and Children’s – Employed Personal Assistant Increase to reflect cost impact of the NLW. 15.48 (hourly rate) 4.10 16.12 (hourly rate) Direct Payments for Adults, Carers and Children’s – Self-Employed Personal Assistant Increase to reflect cost impact of the NLW. 18.88 (hourly rate) 4.10 19.68 (hourly rate) Individual Service Funds - Dependent on Care Type Aligned to the Supported Living rate. Increase to reflect cost impact of NLW and CPI Inflation. 20.64 (hourly rate Dependent on Care Type) 3.47 21.36 (hourly rate Dependent on Care Type) Residential Care – Older People Increase to reflect cost impact of the NLW and CPI inflation. All placements are spot purchased rather than through a framework or contract. 631.40 (weekly rate) 3.47 653.31 (weekly rate) Residential Care – Older People with Dementia 678.79 (weekly rate) 3.47 702.38 (weekly rate) Nursing Care – Older People 711.06 (weekly rate) 3.47 735.56 (weekly rate) Nursing Care – Older People with Dementia 764.19 (weekly rate) 3.47 790.79 (weekly rate) Residential and Nursing – under 65 years old Individually Negotiated 3.47 Individually Negotiated Shared Lives Increase fees to reflect the cost impact of the NLW and CPI Inflation. To be applied to the CWC21029 – Shared Lives Contract.   Arrangement fees will also be uplifted by the same percentage. 326.55 – 550.41 (weekly rate) Care costs only     3.47 337.89 – 569.52 (weekly rate) Care costs only Supported Living Disabilities Framework Increase fees to reflect the cost impact of the NLW and CPI Inflation. To be applied to the CWC19045 – Supported Living for Adults with Disabilities contract and spot purchased care outside of the contract. 20.64 (hourly rate) 3.47 21.36 (hourly rate) Supported Living Forensic Framework Increase fees to reflect the cost impact of the NLW and CPI Inflation. Applied to CWC20029 – Supported Living Framework for Individuals with Forensic History or Significant Complex Behaviour. 24.40* (hourly rate) 3.47 25.28* (hourly rate) Supported Living Block Contracts Increase fees to reflect the cost impact of the NLW and CPI Inflation. Individually Negotiated 3.47 Individually Negotiated Day Care Sessional Rates Increase fees to reflect the cost impact of the NLW and CPI Inflation. 39.32 (sessional rate) 3.47 40.69 (sessional rate) Day Care Hourly Rates Increase fees to reflect the cost impact of the NLW and CPI Inflation. Ensure that the rate is consistent with the supported living rate and proportionate to 1:1 1:2 1:3 staffing ratios. 20.64 per hour for 1:1 staffing 10.32 per hour for 1:2 staffing 6.88 per hour for 1:3 staffing 3.47 21.36 per hour for 1:1 staffing 10.68 per hour for 1:2 staffing 7.12 per hour for 1:3 staffing   The proposed percentage uplifts have been applied to 2025-2026 rates and rounded up so that hourly and weekly rates are divisible by four and seven respectively. This is to allow corporate systems to accurately and correctly facilitate payment to external providers. Actual rates would be communicated with each individual provider as part of implementation.   *This is the current maximum rate. Where providers have tendered lower than this rate then the same percentage and rounding will apply.   4.      That it be noted, engagement had been undertaken with external providers and the feedback received had informed the review amongst other factors such as the increase to the National Living Wage (NLW), Consumer Price Index (CPI) inflation and the legal duties for a sustainable market and setting a balanced budget.   1.      That it be noted, any proposed care fee increases would create an ongoing expectation to continue paying fees at this new minimum level.   2.      That it be noted, all other care contracts not explicitly referred to within the report, are out of scope for the care and support provider review 2026-2027 and therefore, any price adjustments to such contracts are managed through separate mechanisms.   3.      That it be noted, new contracts, including re-tendering, would include indexation clauses which would set out the mechanism for adjusting prices throughout the contract period. Indexation may include linking prices to changes in the NLW and indices for inflation, to be determined based on the specific nature of services being procured.   4.      That it be noted, ensuring quality of provision had been factored when considering proposed care fee increases, which would be continually managed through our quality assurance processes.