DCC Fee Consultation

We have worked hard with providers to ensure feedback on the Devon County Council Fee Consultation was incorporated into a collaborative response. 

Thank you for all your feedback! It is much appreciated. You can view the DCHC response here.

On Friday 11th April, Devon County Council released the following information to providers:

Dear Provider

Firstly, I would like to thank all the care home providers who have participated in the engagement
process with regards to introducing a new Older Person’s Care Home fee model and uplift award for
2025/26. The engagement period started on the 10th February and ended 30th March 2025, the
council has given due regard to the engagement feedback, the Equality Impact Assessment
and market conditions.

New Older Person’s Fee Model

The Council is committed to introducing a new fee model but acknowledges that further engagement
is required before reaching a final decision.

From the feedback we have received during the engagement exercise the Council has decided that
there is further work to be considered in relation to:

• Nursing costs
• The level of ROC and ROO
• Development of service descriptors
• Clarification of bespoke pricing

Working with Valuing Care and our care providers we are committed to implementing a new Older
Persons (65+) fee model and new contract this year. The council acknowledges there will be a delay
in the proposed June implementation date, we are currently developing next steps and further detail
will follow.

Care Home Fees Uplift 2025

Recognising the cost pressures and legislative changes linked to the National Living Wage and
National Insurance, the Council has opted to apply an inflationary uplift for care home fees for the
financial year 2025/26.

The Council considered both quantitative and qualitive information and the feedback from the recent
engagement exercise, to inform its decision-making on the inflationary uplift for 2025/26. This
included day to day experiences as to matters such as Skills for Care data, placement availability,
occupancy rates, an overall monitoring linked to quality and closures, and other matters. The
Council also considered changes to the National Living Wage, CPI effects, and National Insurance
changes, which we need to consider alongside the available funding across all services within the
Council.

The council has concluded to award an uplift of 4%, however the council has made changes to the
original engagement proposal as detailed below:

• The council will not apply a general limit on the personalised fee model: this means all care
home placements will be inflated by an effective 4% (excluding third party contributions and
targeted support which is time limited).
• Consideration has been given towards transitioning to a new fee model and changes to
national legislation, as an additional support measure the council will inflate all Market
premia by 4% for 2025/26.
• The new inflated rates will have an effective start date to 31st March 2025 as opposed to 7th
April and will not be delayed whilst a new fee model is introduced.

Below sets out the new fee rates for 2025/2026

Personalised Fee Model

Hourly Care Cost
The composite hourly rate for Care Staff will increase from £11.76 per hour to £12.33 per hour
Including on-costs the hourly rate will increase from £15.04 to £15.76 per hour.

Accommodation Costs
The council will apply 4% to the weekly fee rates
• Residential will increase from £412 to £424 per week.
• Nursing will increase from £431 to £444 per week

Non Banded Rate
The Non Banded fee rate will be uplifted by 4%.

Banded Fee Inflation
The Banded Fee will be uplifted by 4%. There are a very small number of clients on this contract,
providers can request a review and for these clients to be transferred to the personalised fee model.

NHS Devon Integrated Care Board has also confirmed the following:

Health Funded Placements
NHS Devon Integrated Care Board (ICB) funded placements will be uplifted by 4% for 2025/26.
NHS Devon will write separately and direct to all providers to notify them of the Hospital Discharge
rates.

Funded Nursing Care (FNC)

The Department of Health and Social Care have announced Funded Nursing Care will increase by
7.7% from £235.88 to £254.06 per week from 1 April 2025. This will be applied to payments from,
31st March 2025.

The approach to Section 117 placements is still under discussion with Devon Partnership Trust.

Should you require any clarification to the above information please get in touch with us at
socialcarebusinessrelations-mailbox@devon.gov.uk.

The uplift that has been determined following engagement will be applied from 31st March 2025.

My colleagues and I at Devon County Council would like to take this opportunity to thank you and your staff for your continued support.

Yours faithfully

Solveig Wright
Deputy Director of Integrated Adult Social Care (Commissioning)
Devon County Council