Warning as clumsy council prepares to pay extra £230,000 to care homes

Council bosses say they are confident care homes will agree to a proposed fee increase – after concerns were raised about a potential budget “black hole”. Stoke-on-Trent City Council has proposed increasing the amount it pays to care homes by 1.4 per cent this year, after previously approving a freeze on payments in breach of an existing contract due to of “human error”.

Cabinet members agreed last month to launch a consultation with care homes on the rate increase, before a final decision is made. But opposition Conservative councilors have expressed concerns about the impact on the cash-strapped council’s finances, especially if care homes demand an even bigger increase.

They “referred” the cabinet decision to the Adult Social Care Oversight and Review Committee for further discussion. Council bosses told the committee the £230,000 cost of the 1.4 per cent increase – the minimum annual increase required by the contract – would be covered by funds previously set aside in the budget , meaning there would be no impact on other services.

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And while they are confident nursing homes will accept the 1.4 percent increase, they said any additional increases would be subject to greater scrutiny.

Peter Tomlin, director of adult social services, said: “We will be very clear to the market – and so far we have received no consideration from the majority of providers – that we can only pay as much as what the council can afford. We don’t think there will be more than 1.4 percent, the minimum we have to provide. If it increases more than that, we will be open to scrutiny.

“We work with all providers, and it’s not just about finances. What we’re saying to the residential care market is that we can offer you support with training, health fairs and “employment to facilitate recruitment and ensure that we pay the invoices as quickly as possible.