Adult social care is one of the biggest areas of spend for the Council, with a budget of £242 million in the 2024/25 financial year, and there is growing demand in Liverpool, in line with national trends.

Charging for the services provided ensures that care and support can be sustainably funded, allowing the Council to continue delivering high-quality services to residents.

By asking those who can afford to contribute to the actual cost of their care, the Council can direct resources more effectively, ensuring that limited public funds are used where they are most needed. This approach helps to maintain a fair and equitable system, where individuals only pay what they can afford while also supporting the financial sustainability of the care services available to everyone who needs them.

The Council is therefore asking permission from Cabinet to consult on some specific measures which would increase payments from those individuals who can afford to pay on the basis of the actual cost of their care, and which would bring Liverpool closer into line with national practice.

The charges are subject to a financial assessment, which is carried out in accordance with regulations that are set nationally, and this means that people with care and support needs will not be asked to pay more than they can afford to.

Those that do contribute to the cost of their care are protected by a Minimum Income Guarantee, which varies depending upon age and circumstances, but in the case of a single pensioner is £272.70 per week. The council also disregards an additional 10 per cent of income over and above the Minimum Income Guarantee.

The proposals are:

• Introducing a set up charge and annual arrangement fee for anyone with savings or capital above the threshold of £23,250 who has to pay for the full cost of meeting their own care or support. It is proposed to introduce a set up charge of £200 and annual arrangement fee of £150.
• Charging on the basis of the actual cost to the Council for arranging care and support.
• Charging a person for their care based on the number of carers they have. Currently, the contribution is based on one carer, regardless of the actual number of carers required at any one time to provide care and support.
• Charging a person for the cost of storage of personal items and boarding pets where the Council arranges this for them under its statutory duties.

The proposals are for non-residential care services and do not relate to what the Council currently charges for residential care home or nursing care home placements.

Subject to approval at a Cabinet meeting on Tuesday 3 June, the consultation will start later in the month and run for eight weeks as a minimum.

Following the completion of the consultation, the findings will be reported back to the Cabinet for a final decision.

Councillor Angela Coleman, Cabinet Member for adult social care, said:

“We have not reviewed our charging policy for at least three years and as a result we have not kept pace with other local authorities.

“Adult social care is one of our biggest areas of spending and accounts for a large proportion of our overall budget, so it is absolutely vital that we make sure our policies help us deliver a sustainable service in the face of growing demand.

“Nobody will be asked to pay more than they can afford to pay towards their care and support. They will be protected by the nationally set minimum income guarantee. In Liverpool we are committed to reducing inequality which is why we have kept the extra 10 per cent income disregard in addition to the minimum income guarantee, to help ensure people have enough money for living expenses. We also decided to maintain the automatic deduction for disability-related costs to support the most vulnerable individuals.

“Our Financial Inclusion Team will also work with individuals to make sure they are accessing all the welfare payments they are entitled to.

“Charging in line with the actual cost of care allows the Council to provide more comprehensive and long-term support for all eligible individuals, ensuring that care remains available and accessible for future generations.

“However, despite these protections, the Council recognises that these changes could have an impact on a number of individuals in receipt of care and support, and we will be running an extensive consultation involving detailed discussions with them, and their families and carers, to understand more about the potential impacts.

“We will take into account the feedback we receive before making a final decision later this year.”