Cost of care

Local authorities were required to survey a range of providers (representative of the local market) as part of the cost of care exercise and to use the exercise to determine and report the median actual operating costs for the following categories, plus evidence and values for return on capital and return on operations. The categories are:

  • 65+ care homes
  • standard residential care
  • residential care for enhanced needs
  • standard nursing care
  • nursing care for enhanced needs
  • 18+ domiciliary care

In addition to the median cost, the cost of care report is required to capture the lower quartile and upper quartile costs. This reflects that there are a range of local costs.

Information was submitted to DHSC in accordance with the DHSC on the 14 September 2022. The DHSC then reviewed the documents and required all Councils to publish Annex B by the 1 February 2023.

Annex B comprises the Trafford cost of care report which details how:

  • the cost of care exercises were carried out
  • providers were engaged
  • the lower quartile, median and upper quartile for costs collected
  • the resulting cost of care for the local area has been determined, including the approach taken for return on capital and return on operations.

Separate reports were produced for 65+ care homes and 18+ domiciliary care due to their very different cost bases.

These reports are not intended by the DHSC to be a replacement for the fee-setting element of local authority commissioning processes or individual contract negotiation.