Fair cost of care and market sustainability

Fair Cost of Care and Market Sustainability Plan

In December 2021 the Government published a white paper 'People at the Heart'. It outlines a 10-year vision with personalised care and support at the heart of adult social care (ASC). The Market Sustainability and Fair Cost of Care Fund supports the vision's implementation.

The Government asked local authorities to survey the costs of care homes for older people and home care services. This linked to the planned implementation, in October 2023, of national reforms to ASC funding and the charging regime.

In late 2021 it was announced that local authorities would receive Market Sustainability and Fair Cost of Care grant funding. The primary purpose of the fund is to support local authorities to prepare their markets for reform. 

Funding was conditional on completion of a 'fair cost of care' exercise with care homes (65+) and home care providers (18+). This would determine a median rate for the market, as part of the preparations for social care reform.

The results and analysis of the process, submitted to the Department of Health and Social Care (DHSC) are below:

Annex A - Grant Template (PDF, 210 KB)(opens new window)

Annex B - Domiciliary Care Report (PDF, 180 KB)(opens new window)

Annex B - Residential and Nursing Care Report (PDF, 321 KB)(opens new window)

The autumn statement 2022 has confirmed the delay of social care reforms until at least October 2025.

We have developed a Market Sustainability Plan in line with the changes. It covers the period up to October 2025, when the potential reforms will begin. 

Adult Social Care Market Sustainability Plan (PDF, 207 KB)(opens new window)

We will continue engaging with ASC markets, promoting sustainability now and after October 2025.