Councils set the rates they pay for care each year. The statutory guidance tells them to have evidence that their fees cover the cost of care, and your own cost figures are that evidence.
The Care and support statutory guidance says councils "should assure themselves and have evidence that contract terms, conditions and fee levels for care and support services are appropriate to provide the delivery of the agreed care packages with agreed quality of care" (paragraph 4.31). The same paragraph says "reasonable fee levels allow for a reasonable rate of return by independent providers".
Paragraph 4.35 adds that councils "must not undertake any actions which may threaten the sustainability of the market as a whole", giving the example of "setting fee levels below an amount which is not sustainable for providers in the long-term."
Bury Council's cabinet approved its 2026/27 provider fees on 11 March 2026, effective from 1 April. It uplifted the staffing element of each fee by 6.73% for providers paying the National Living Wage and by 5% for those paying the Real Living Wage, with a further uplift on non-staffing costs.
A cost case sets out what one week or one hour of care costs to deliver: care staff hours at the wage you pay, holiday pay, employer National Insurance and pension, then the running costs of the home or the branch, then a return. Each line comes from your own accounts and rotas.
The National Living Wage rises from £12.71 to £13.21 an hour on 1 April 2027, an increase of 3.9%. For a full-time worker on 37.5 hours a week that adds £975.00 of pay and £146.25 of employer National Insurance a year.
Bury ran its fee engagement with providers before the cabinet decision of 11 March 2026, using a costing workbook in which providers set out their costs. We prepare cost evidence to fit each council's engagement timetable.
We build the cost per hour or per week from your accounts and rotas, model the April 2027 wage rise, and prepare the figures for your council's fee engagement. See fee rates and cash flow and the care home fee rate calculator.
The statutory guidance says councils should have evidence that fee levels are appropriate to deliver the agreed care, and must not set fees below an amount that is sustainable for providers in the long term (paragraphs 4.31 and 4.35). Each council sets its own rates.
Where a person chooses a more expensive setting, a third party, or in certain circumstances the resident, can pay the additional cost as a top-up (paragraph 8.37).
The cost of the April 2027 rise for each full-time care worker.
Why unpaid travel between visits can take a carer's pay below £12.71 an hour.
Occupancy, staff cost ratio and the other measures we report each month.
We look at your last accounts, your payroll hours and your fee rates, and tell you what we would change.