The Adult Care Services Cabinet Panel met on Thursday 22 January 2026 to discuss the 2026/27 budget and Medium-Term Financial Strategy for Adult Care Services, alongside proposals for the Supported Living Programme and the response to a consultation on a Fair Pay Agreement for adult social care workers. Key decisions included endorsing the proposed budget and Medium-Term Financial Strategy, delegating authority for decisions on re-providing residential establishments within the Supported Living Programme, and noting the council's response to the Fair Pay Agreement consultation.

Budget 2026/27 and Medium-Term Financial Strategy for Adult Care Services

The panel discussed the proposed budget for Adult Care Services for 2026/27, which forms a significant portion of the council's overall budget. The budget is set against a backdrop of considerable financial pressures, including a projected loss of £42 million annually from the Fair Funding Review. Despite these challenges, the council plans to invest £1.2 billion in total, with £663 million allocated to Adult Care Services. This includes a £47 million investment in frontline service delivery, with £21 million for high-quality care support and £23 million to meet growing population demands. Savings of £23 million are anticipated through efficiencies and income generation. The capital programme includes £12 million for two new day centres and £75 million for accommodation investments.

Concerns were raised about the impact of the Fair Funding Review, which disproportionately affects Hertfordshire County Council. Councillors discussed the importance of prevention, with a £9.7 million investment in the Connect and Prevent programme, which aims to deliver better outcomes and savings by reducing the need for long-term care. The budget also includes significant capital investment in supported living, extra care housing, and nursing homes.

Discussions also touched upon the challenges of an ageing population, the linkage between adult care and public health, and the need for greater investment in preventative measures. The council's approach to supporting the voluntary sector was also discussed, with an allocation of around £13-14 million for 2026/27.

The panel was invited to note and comment on the budget proposals and endorse them to the Cabinet.

Delegate Authority to Executive Director of Adult Care Services Regarding the Decision Whether to Re-provide Residential Establishments Included in Phase 1 & 2 of the Supported Living Programme

The panel considered a report proposing to delegate decision-making authority to the Executive Director of Adult Care Services regarding the re-provision of residential establishments within Phase 1 and Phase 2 of the Supported Living Programme. This programme aims to increase the supply and quality of supported living accommodation for working-age adults with disabilities.

The current process requires individual schemes to go through a full political process for Cabinet approval, which is time-consuming. The proposed delegation would streamline this process for 18 schemes across Phases 1 and 2, allowing the Executive Director to make decisions on closure, re-provision, or change of use in consultation with relevant officers and executive members, following consideration of consultation feedback.

The panel supported this delegation as a means to expedite the delivery of the programme, ensuring that residents have access to more appropriate accommodation. A recommendation was added that an annual update report on the programme's progress be brought back to the panel.

Response to the Consultation on the Establishment of the Adult Social Care Negotiating Body and Associated Fair Pay Agreements

The panel received an update on the council's response to the government's consultation on establishing an Adult Social Care Negotiating Body (ACSNB) and Fair Pay Agreements (FPAs). The council generally supports the principle of a national framework to improve pay and conditions for adult social care workers, acknowledging the critical role of the workforce and the high turnover rates.

However, the council expressed significant concerns regarding the proposed structure and funding. Key points of contention included the lack of direct representation for local government on the negotiating body, despite their significant commissioning responsibilities and financial exposure. The council also strongly opposed the inclusion of local authority-employed staff within the scope of the FPAs, citing potential equal pay risks and the fact that local authorities often offer more competitive pay and benefits.

Concerns were also raised about the sufficiency of the proposed government funding (£500 million) to cover the anticipated costs of pay increases, which are estimated to be significantly higher. The council stressed the importance of timely implementation of any agreements to align with local authority budget cycles and highlighted the need for clarity on enforcement mechanisms and the impact on self-funders and those employing personal assistants. The panel noted the council's response and agreed to ask the Leader of the Council to write to the Secretary of State and local MPs to reiterate these concerns and the importance of local government representation.