Last updated:

18th July 2023

2022 Cost of Care Exercise

Find out about the Adult Social Care Reforms

In December 2021, The Department of Health and Social Care (DHSC) announced its intention to establish a Market Sustainability and Fair Cost of Care Fund. The fund sought to support local authorities in preparing their markets for reform. As a condition of this funding, all local authorities were required to carry out a cost of care exercise with providers of 65+ care homes and 18+ domiciliary care to understand the actual costs of care delivery. It has since been announced that the Adult Social Care charging reforms are now delayed so it is uncertain how the reports will be utilised.

Wokingham Borough Council used a proportion of its small 2022/23 grant allocation from the Cost of Care Fund to commission C.Co Ltd (C.Co) to undertake the Cost of Care exercise for age 65+ care homes and age 18+ domiciliary care as mandated by the Department of Health and Social Care. C.CO utilised iESE Carecubed tool for care homes available nationally to local authorities to collect the data from providers.

The Cost of Care has been presented as a median rate as prescribed in the methodology. In its fee setting, Wokingham Borough Council will rely on other factors, such as knowledge of the market, commissioning arrangements frameworks and regional benchmarking.

Given the level of time and financial investment and the use of an independent organisation to lead the exercise, the response rate has been disappointing and the outcome of this exercise does not represent Costs of Care in Wokingham Borough. Despite the data limitations, no data was excluded from the analysis and Wokingham Borough Council will have due regard to the data gained from this exercise and will consider it as part of any future fee-setting.  But it is important to note that this will be considered alongside information that the council holds and the budgetary context.

Wokingham Borough Council fully appreciates the financial pressure that the whole sector is under and the exceptional job providers are doing to meet the challenges within Adult Social Care. Wokingham Borough Council has always supported providers by paying very competitive rates within the funding envelope provided. The council is committed to moving towards paying a rate for care, that ensure staff delivering care receive a fair wage.

It must be acknowledged that Adult Social Care has been historically underfunded with insufficient funding made available to meet demography and inflation pressures and increase care workers pay, while also supporting the provider market.

Although Wokingham Borough Council continues to perform well, funding is urgently needed to ensure Councils are able to deliver on all of their statutory duties under the Care Act. We continue to lobby national government, and have written to the last three Ministers, seeking sustainable funding for the social care system, recognising the increased levels of demand and the professionalism of care staff and enabling wages that compete with the surrounding economy. Any future uplifts or fees agreed by the Council need to be considered in line with funding availability and affordability.

Read the reports from the cost of care exercise: 

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