Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 28, 2026

Purpose:

Content: 13.1 The Assistant Director of Care Governance and Financial Inclusion presented a report which outlined two changes to the Fairer Contributions Policy which sets out the Council’s charging arrangements for people in receipt of care outside of Care Homes. The proposed changes were as follows:   Removal of the Maximum Charge. The maximum charge for non-residential care charges is currently set at £590 per week and it is proposed that this cap (and the resulting Council subsidy of care costs for self-funders) is removed from 6 April 2026 in order that charges to self-funders reflect the actual cost of care. Introduction of a £500 per year arrangement fee, for self –funders, for the contracts, commissioning and financial work undertaken by the Council on behalf of full fee payers in relation to non-residential care. This charge will commence from 6 April 2026 in order that the cost to t     The report also proposed a range of updates to the wording of the policy in order to bring the terminology up to date and to improve clarity for the reader.     13.2 RESOLVED UNANIMOUSLY: That Adult Health and Social Care Policy Committee:-       a)    Approve removal of the maximum charge for non-residential Care Services from 6 April 2026 b)    Approve introduction of a £500/ year Arrangement Fee to full-fee payers for work involved in arranging, monitoring and administering Non-Residential Care from 6 April 2026. This fee would then be uplifted in line with inflation each year c)    approve wording changes to Fairer Contributions policy to reflect these changes and other updates for benefit changes and clarifications Delegate to Officers authority to agree a phased implementation plan for the individual impacted by proposal a based solely on income, with the intention of a 3-year phased implementation plan to mitigate the impacts in this case.   13.3 Reasons for Decision     13.3.1 These proposals bring Sheffield City Council in line with standard practice by other Local Authorities and are reasonable actions to support the financial sustainability of Adult Social Care.     13.3.2 The change would mean that the charges people are asked to pay will better reflect the actual cost of their care. Removing the subsidy that the maximum charge provides would bring the policy more in line with the principle of people paying for what they can afford. It also makes charging for local authority care more consistent with the cost of other forms of support. In particular this means that individuals who approach the council for support are treated more similarly to those who arrange and pay for their care privately.     13.4 Alternatives Considered and Rejected     13.4.1 Alternative Option 1: No change to maximum charge This would leave the council as an outlier in its treatment of individuals with capital and continue the financial subsidy to more affluent individuals.   13.4.2 Alternative Option 2: Phased implementation A phased implementation was initially proposed with an increase to the maximum contribution from January 2026 followed by the full removal of the maximum charge from April. This was to allow time for people to make alternative plans. Taking on board feedback from consultation about the short timescales the removing of the interim step will allow people more time to adjust to the changes.     13.4.3 Alternative Option 3: Variable levels of arrangement fee Some consultation responses proposed a variable rate for the arrangement fee, linked to the level of support the individual receives. This is not in line with the guidance which recommends a flat rate fee. It also does not reflect that the work that this fee funds is not strongly linked to the size or cost of a care package but to the number of individuals supported. The key tasks are monitoring providers, negotiating contracts and brokering care, these are similar regardless of the amount of care. This option would also not be transparent when people choose to use council arranged care as the cost would fluctuate depending on how much care an individual receives. A single fee gives transparency and predictability.     13.4.4 Alternative Option 4: Reduced rate arrangement fee The council is entitled to recover costs that the local authority incurs in arranging care. The Council could choose to subsidise these costs and charge a lower rate that would not reflect the actual cost of the work undertaken. However this would mean continued subsidy of full fee payers.