Care providers in North Yorkshire are calling for local fee increases in 2024-25 that meet the cost of care.

The Independent Care Group (ICG) is balloting its members over proposed fee increases which it says amount to no extra money for many providers and less than the 9.8% rise in the National Living Wage for many others.

ICG chair Mike Padgham said: “We have a great relationship with North Yorkshire Council and very much hope that we can reach an agreement on fees that supports local providers and enables them to keep providing an excellent standard of care across the county.

“We appreciate that local authorities are suffering severe cutbacks themselves and we have every sympathy with the plight that North Yorkshire Council finds itself in. However, we long ago reached the point where, in many cases, the base price paid for care by the local authority does not meet the actual cost to providers of meeting the ever more complex needs of service users.”

The talks with the council come after the government provided a further £500 million to local authorities for social care last week.

Padgham added: “To keep delivering proper, responsible and sustainable care to older and vulnerable people in this county we need a fee increase that recognises the true cost of providing care.

“It is vital that, aided by its share of the extra £500 million from the government, the council recognises the issues we have in maintaining adult social care in North Yorkshire and that we can reach a positive agreement.”

North Yorkshire Council’s executive member for health and adult services, Cllr Michael Harrison, said: “We continue to support thousands of people across North Yorkshire to be independent and part of their community, while enjoying the best possible life for as long as possible.

“As a result of our investment, North Yorkshire already pays some of the highest rates to social care providers in England. For example, the Homecare Association recommended that the minimum hourly rate should be £25.95 and in North Yorkshire, based on a sample week, we are paying £27.80 – which is 29% above the national average of £21.59.

“We are still in discussions with the care sector, including the ICG.

“North Yorkshire Council has committed to a three-year programme of investment into our social care sector that is currently funded by reserves with an overall council-wide projected deficit of more than £47 million, which last week’s local government settlement will help to reduce.

“Our proactive approach to support providers also involves our commitment to continuously lobby the government. We recognise the significant financial pressures facing the social care sector and will look to continue discussions with ministers.”