Council Moves to Make Social Care Contributions Fairer

Natalie Johnson , 12 February 2025 14:03

South Tyneside Council is reviewing its Adult Social Care client contributions to make it fair for all who access adult social care support.

South Tyneside Council has subsidised Adult Social Care costs for residents for almost a decade. As the number of people who require support from adult social care continues to rise that subsidy is simply unsustainable and funding must be allocated to support those who need it most. This will include the introduction of some new charges.

As part of the review, people who use adult social care will be invited to take part in a 12-week consultation which will consist of a questionnaire and in person drop-in events.

Cllr Ruth Berkley, Lead Member for Adults, Health and Independence at South Tyneside Council said: "Historically the Council's allowances have been greater than the governments minimum income guarantee and that of our neighbours. It is proposed that the charging policy is aligned to the Government's 'Minimum Income Guarantee' and similar to that of neighbouring authorities. The current policy is not fit for purpose and out of sync with national and regional policies.

"We are working to target support at the residents and parts of the Borough that need it the most in a bid to make things fairer. We know that some residents face financial difficulties. That is why we are determined to keep costs as low as possible and continue to subsidise many services rather than go to full cost recovery." 

Over the years changes to the benefit system and allowances within that system has created complex charging scenarios. The proposed changes to the client contributions will look to simplify and streamline things for residents as well as making sure that those with similar incomes and levels of need are treated equally.

It is anticipated that some of those who currently contribute to their care may have to pay more under the new proposals although a proportion of people may also be reassessed and pay less.

Revised client contributions could include:  

  • Align current Council Charging Income Allowances with Department of Health Minimum Income Guarantee Rate 
  • Disability Related Expenditure streamlined from several rates to two - higher and lower.
  • Recalculation of a person's weekly non-residential charge, annually.
  • Introducing a levy for setting up and managing Deferred Payments Agreements for resident who are assessed as self-funding with secondary properties in supporting housing accommodation.
  • Introducing administration and arrangement fees for self-funding residents living in the community. 
  • Introduce an extra allowance for home insurance (buildings only) for owner-occupiers. 
  • Introduce a charge for Wellbeing Support in extra care accommodation. 
  • Development of an online charge calculator and portal for residents for those who wish to use it. 

People who use Adult Social Care services will be individually assessed to ensure that they have a guaranteed income and define what their contribution will be going forward.

Cllr Berkley added: "We always take a balanced approach to setting fees and charges and will continue to subsidise where we can. However, this must be balanced against meeting the increasing requirement for support and the associated costs across adults and children's social care. Supporting people with some of the most complex needs in society absorbs an increasing proportion of all councils' budgets."

Even with the Government's Adult Social Care precept on council tax, which is ringfenced for those services, the increase in numbers of people who need support from Adult Social Care still creates a significant funding gap. The funding allocated nationally, and monies raised locally via the precept for adult social care does not contribute sufficiently towards the cost of Adult Social Care services. Demand is anticipated to continue to grow as the numbers of people requiring adult social care increases and their support needs become more complex. 

For more information visit www.southtyneside.gov.uk/haveyoursay

Last modified: 12 February 2025 15:47