Agenda item

The Cabinet considered a report of the Director of Adults and Communities which detailed the work being undertaken by the County Council in preparation for the Government’s planned Adult Social Care Reforms and sought approval for submission to the Department of Health and Social Care of a Market Sustainability Plan. A copy of the report, marked ‘Agenda Item 8’, is filed with these minutes.

Comments of the Adults and Communities Overview and Scrutiny Committee, which had considered a report on the matter at its meeting on 5 September, were circulated separately and a copy is filed with these minutes.

In response to questions from members, the Director said it was not yet clear how funding of the proposed reforms would be met following the Government’s announcement of the abolition of the 1.5% National Insurance rise which had been initially allocated to fund them. He added that there were many uncertainties with regard to how the proposed changes would affect services, including care capacity.

Mrs Radford CC said the proposals would lead to considerable reform which was likely to have a significant negative impact on the Council’s and care providers’ finances unless there was much greater Government funding than the amount currently allocated.

Mrs Richardson CC said the report highlighted the difficult financial position the Council would face as a result of the lack of funding to support the changes and the Government had a responsibility to fund local authorities properly in order for services, which help protect and care for the most vulnerable, to be maintained.

RESOLVED:

a)    That the comments of the Adults and Communities Overview and Scrutiny Committee be noted;

b)    That the significant developmental work underway to prepare for the Charging Reform be noted;

c)     That the potential financial implications of implementing Adult Social Care Reforms requirements be noted;

d)    That the Director of Adults and Communities, in consultation with the Director of Corporate Resources and following consultation with Lead Members for Adults and Communities and Resources, be authorised to:

                           I.    submit a response to the Government consultation on the distribution of funding to support the reform of the Adult Social Care Charging System in 2023 to 2024;

                         II.    submit the final version of the outcome of the Fair Cost of Care exercise for care homes and home care and the initial Market Sustainability Plan, including commissioning proposals for 2023/24 and 2024/25, to the Department of Health and Social Care before the 14 October 2022 deadline.

(KEY DECISION)

REASONS FOR DECISION:

The Adult Social Care Reforms were expected to have a significant impact on the medium term financial position of the Council.

A full programme was in place to meet all of the requirements set out in the White Paper; Charging Reform had formed a significant aspect of the Programme and required changes to processes and policies to be implemented at pace. It was important that the Cabinet was aware of the work being undertaken to ensure that the County Council met the October 2023 deadline for the systems and support to be in place for new self-funders.

Responses to the consultation on the distribution of funding to support the reform of the adult social care charging system needed to be submitted by the 23 September 2022. It was important that Leicestershire County Council responded to the consultation recommending the option to its greatest advantage.

To support local authorities to prepare their markets for the Adult Social Care Reforms, the Government established a centralised fund (Market Sustainability and FCOC Fund). To receive their share, local authorities were required to submit an MSP to the DHSC by 14 October 2022 containing information pertaining to an analysis of a FCOC for residential and nursing care for people aged 65 years and over, and for domiciliary care for people aged 18 years and over, which the Government is expected to use to inform future allocations to local authorities for adult social care.