Guiding approaches

The market sustainability and fair cost of care fund guidance is aimed at calculating the actual costs of delivering care and developing a plan to narrow the gap between local authority and self-funder fee rates to secure a sustainable care sector. This paper was one of the key elements of charging reform underpinning the national social care reform programme.

A delay of two years in the implementation of the social care reform was announced in the Chancellor of the Exchequer autumn statement in October 2022. Local authorities were required to publish their fair cost of care reports and a market sustainability plan.

Read our fair cost of care reports and market sustainability plan for Norfolk

The fair cost of care reports detail the process undertaken to calculate the median cost of care for care homes primarily supporting people aged 65 and above and domiciliary care services for people aged 18 and above.

The market sustainability plan is aligned with the market position statement. It focuses on three elements:

1. An assessment of the current stability of the care market
2. An assessment of the impact of future market changes between now and October 2025, when social care reform is now due to be implemented
3. A recognition of the gap between the current market median rates (from the cost of care exercise) and the current average fee rates that we pay. This section also includes our plans to help address the sustainability issues identified.

In Norfolk we have recognised the pressures of the working age adult sector, who work with adults under the age of 65. This sector is facing acute financial sustainability concerns and it is acknowledged that a major piece of work is needed to better understand the costs of delivering care within this sector.