Adult Social Care - Self-funders fee
Overview
The Fair Funding Review 2.0 is expected to reduce the resources available in the Council’s budget. At the same time, the cost of providing services is increasing – particularly in areas such as children’s and adult social care, homelessness support, and temporary accommodation.
To manage the effects of these factors on the Council’s adult social care services, Kensington and Chelsea Council and Westminster City Council are considering introducing a charge for self-funders to cover the administration costs associated with arranging and coordinating their care.
Who is a self-funder?
Under Government guidance, people with savings of more than £23,250 are categorised as being able to afford to pay the full cost of their care and support. They are not eligible for Council-funded care, but they can still ask the Council to arrange and coordinate their care.
These people are termed “self-funders.”
By asking the Council to arrange and coordinate their care, self-funders can access the Council’s preferential rates with care agencies. These rates may be lower than the rates self-funders would pay if they chose to arrange their care on their own.
The Care Act 2014 allows for councils to charge an arrangement fee, many of which have already introduced this across London and other parts of the country. It sets out that the fee should include the cost of negotiating and managing the contract with the care provider and cover administration costs.
Currently, the Council arranges and coordinates self-funders’ care for free. It pays self-funders’ bills associated with their care, and then sends them invoices on a weekly basis.
If a person’s savings drops below £23,250, they become eligible for Council-funded care and they can ask the Council to assess their financial position if needed.
Frequently Asked Questions on self-funders fee
1. What is this consultation about?
This consultation asks responders’ views on introducing an administration fee for people who pay the full cost of their care and support, but ask the Council to arrange this for them. These people are also known as self-funders.
2. Who is a ‘self-funder’?
If someone has more than £23,250 in savings and investments, the Care Act 2014 categorises them as a self-funder. A self-funder must pay for the costs of their care and support, with no financial help from the Council. As a self-funder you can either:
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arrange your own care,
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ask us to arrange your care, at no extra cost currently,
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however you choose to arrange your care, you must pay for all of it.
3. Why is the administration fee being considered?
When self-funders ask the Council to arrange their care for them, council staff must spend time completing a range of tasks. These include:
- Searching for the appropriate care provider to meet someone’s needs and preferences
- Negotiating the cost of someone’s care and support at Council rates and putting a contract in place for this
The administration fee covers the Council’s costs for finding and contracting with a care provider, managing payments to the care provider, managing invoices, assessing the quality-of-care services, and dealing with complaints and enquiries related to care and invoicing.
Why your views matter
Please leave your feedback by completing our survey. If you require this survey in a different format or require assistance in another language please contact ASCHconsultations@rbkc.gov.uk.
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