South Tyneside Council backs big shake-up of adult social care charges – what it means

To ensure services remain “sustainable and fair” South Tyneside Council’s cabinet considered backing a revised adult social care charging policy.

The proposed changes aim to bring the borough in line with national guidance and neighbouring authorities, while maintaining a commitment to fairness and transparency.

The council has consulted widely on the proposals including a 12-week consultation where people who use adult social care services were invited to have their say – with feedback helping to shape the final recommendations.

An online financial assessment tool is also being developed to help residents understand potential care costs and plan ahead.

At the latest meeting of the ruling Labour cabinet councillors supported the adoption of the proposed adult social care charging policy.

Cllr Ruth Berkley, lead member for adults, health and independence, recommended they agree the report “so that it can be taken up to full council and we can ensure that our adult social care charging policy remains consistent and up to date.”

Speaking at the meeting, she said: “It should be noted that nobody will contribute more than the minimum income guarantee or what is permissible under current guidelines.

“Broadly the proposal includes changes to minimum income guarantee, disability related expenditure and introducing a new home insurance allowance.

“These changes seek to rebalance thresholds, rates and allowances to keep things fair, consistent and in line with other local authorities.”

She added there are also proposals “around annual income uplift, discretionary deferred payment agreement, charging for deferred payment agreements, an administration fee for self funders and an online charge calculator.”

Cllr Berkley noted it is “difficult to ascertain a precise calculation” of the financial impact of the changes for the council without a full income and allowance reassessment for every individual.

However “current modelling and analysis estimate that allowing all proposals would generate just over £1.2million annually” for the council.

The meeting heard the current non-residential charging policy was introduced in December 2015 following the introduction of the Care Act 2014 and amended in 2016.

However there have been “significant changes” to the benefits system by Government in the intervening years, resulting in “inconsistencies in the current charging policy.”

This has led to “a disparity between the charges levied in South Tyneside when benchmarked against neighbouring authorities and applying both regional and national practice”, according to leading councillors.

Local authority chiefs had previously explained how they had subsidised adult social care costs for residents for almost a decade.

However, 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, according to officers.

This therefore would include the introduction of some new charges.

It is anticipated 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, according to local authority chiefs.

The latest meeting of the ruling cabinet also received a report on the local account for adult social care and commissioning 2024, an annual document providing a summary of successes, performance, and priorities for the service.

This detailed how during 2023-24, the council supported more than 4,500 residents, delivered over 12,700 hours of home care per week, and achieved carer satisfaction rates significantly above national averages.

Three quarters of people referred to adult social care received services aimed at promoting independence, with 85% of them requiring no further support.

Key successes included the launch of the Borrowdale Extra Care facility and two specialist accommodation developments with Karbon Homes to expand supported living options.

However, the reports also highlighted the pressures facing the system.

South Tyneside has one of the fastest-growing older populations in the region, with the number of over-65s needing care expected to rise by 57% by 2038.

At the same time, the borough faces high levels of deprivation, increasing complexity of care needs, and a social care workforce under strain.