Decision details

An Update on Cost of Care and Market Sustainability Planning in Adult Social Care - MAR23/CMDN/100

Decision Maker: Cabinet Member for Adult Social Care, Health and Public Health

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: Yes


The Cabinet Member is recommended to:


1.    Note ongoing work to produce a Market Sustainability Plan in line with Government requirements


2.    Delegate approval of the Market Sustainability Plan to the Director of Adult Social Care Services.


Reasons for the decision:

In 2021, the Department for Health and Social Care (DHSC) published Build Back Better-our plan for health and social care and People at the heart of care - adult social care reform white paper which outlined significant legislative changes to Adult Social Care, planned to come into effect from October 2023. In preparation for these changes, Local Authorities across England with social care responsibilities were required to provide information on the sustainability of their local care provider market, and to conduct and exercise with the market to establish the costs of providing care.


As part of the reform agenda, Local Authorities are expected to produce 2 Cost of Care Reports (one for Care Homes and another for Home Care) as well as a Market Sustainability Plan. In late December 2022, DHSC announced that all Local Authorities must publish their Cost of Care reports on their GOV.UK websites by 1st February (this has been completed) and publish their Market Sustainability Plans by 27th March 2023. Work is now underway to finalise out Market Sustainability Plan.


Alternative options considered:

The following option was considered and rejected: -


To do nothing. This option is rejected as PCC is required to publish its Market Sustainability Plan as directed by DHSC. Failure to do so would result in a lack of funding for the care market. This would disadvantage us with our ‘market shaping’ duty under Section 5 of the Care Act 2014.


Interests and Nature of Interests Declared:

There were none.

Background Documents:

The following documents were used to prepare this report: -


·         The Department of Health and Social Care – “Build Back Better; Our plan for health and social care”

·         The Department of Health and Social Care – “People at the Heart of Care – Adult Social Care Reform White Paper”

·         PCC Cost of Care Exercise – Care Home for people aged 65+

·         PCC Cost of Care Exercise – Homecare for people aged 18+

·         Draft Market Sustainability Plan


Publication date: 17/03/2023

Date of decision: 17/03/2023

Effective from: 23/03/2023

Current call-in Count: 0

Accompanying Documents: