Guiding approaches

The care act (2014) requires local authorities to promote the efficient and effective operation of the care and support market. This means that people needing to access care and support will have:

• A variety of providers to choose from offering a good range of services
• Good quality services to choose from
• Information to make informed decisions about the right services to meet their needs

To achieve these requirements, local authorities must:

• Understand the importance of ensuring the sustainability of the market. A sustainable market means that providers are paid a 'fair' fee rate so that they can deliver the services and support that people need at the right level of quality. Read more about market sustainability and fair cost of care.
• Support the continuous improvement in the quality of services and encourage innovative practice to improve the efficiency and effectiveness of services supplied
• Understand the importance of having staff within social care who have the skills and ability needed to deliver high quality services

Local authorities must have appropriate systems in place to fulfil their duties in relation to market shaping and commissioning. More information about our market shaping strategies.

The money that councils are given comes from the taxes that people pay to the Government. To spend the money in the best way means that we must let providers know what services are needed and what we believe is a fair price to pay for them.

Providers who are not delivering what is needed can either change what they do or decide to stop supplying the services that are no longer needed. This process is defined as 'shaping the market'.