The proposed changes follow a public consultation where people gave their views on 3 available options, although alternative options could be suggested.
Members of Cabinet will be asked to agree a recommendation to approve a revised charging policy which is more in line with the limits allowed within national charging guidelines and those applied by many other local authorities across the country.
The report being discussed says we have historically charged people receiving community care significantly lower rates than allowed for in the national charging guidelines and at a much lower rate than the cost of delivering care.
In Derbyshire we currently contribute to the cost of people’s care if they have capital up to £50,000 – compared to the national capital limit of £23,250. It does not currently charge a tariff income and has set a maximum weekly contribution of £51.07.
At the meeting on 7 December 2023, Cabinet will hear that rising demand and increasing pressures on our budget means we must consider changing the policy to ensure adult social care services remain sustainable.
More than 2,300 people had their say during the consultation on 3 proposed options to change the charging policy for local residents receiving adult social care support in the community to:
Option 1:
- introduce the national capital limit of £23,250
- introduce the national tariff income of £1 in every £250 for those with capital between £14,250 - £23,250
- charge on 100% of disposable income with a £20 a week Disability Related Disregard
Option 2:
- the same as option 1 but charge on 90% of disposable income with a £20 a week Disability Related Disregard
Option 3:
- the same as Option 1 but charge on 80% of disposable income with a £20 a week Disability Related Disregard
Cabinet is being asked to agree a recommendation to change the policy in line with option 2.
The report says this is the preferred option as this, together with other measures within the proposed new policy, would ensure it continues to be more generous than the limits allowed nationally and balances the need to support people who need adult care the most while generating income to ensure services remain sustainable.
Councillor Natalie Hoy, our Cabinet Member for Adult Care, said:
“We’re committed to supporting people to remain independent at home for longer but we must also ensure our adult care support is sustainable and supports those people who need it most – now and in the future.
“For many years we’re charged people significantly less for the care they receive in their community than is allowed for under the nationally set guidelines and which are applied by most other councils.
“We currently expect to receive income of just over £10 million in the next financial year but the actual cost of caring for people is £127 million and this is simply not sustainable. We have to make difficult decisions about how to continue to deliver high-quality services while managing external pressures on our budgets.”
There are currently more than 6,000 people with eligible care needs who have undergone financial assessments to receive adult social care support in the community.
During the consultation, people were also asked for their views on revising our current disability related expenditure process. The report to Cabinet proposes anyone with a disability or long-term health condition would automatically retain £20 a week from their income – known as a Disability Related Disregard. It would also include a transparent and accessible process where people are able to apply to be assessed to receive extra financial support where they feel they incur additional costs over this amount related to their disability or ill health.
If approved, the new policy would come into effect from 15 July 2024 to give people time to adjust and a yearly inflationary increase will not be applied in April. During the transition period people would be offered information and guidance from a specialist team to ensure they were claiming all the benefits they were entitled to.