Fair cost of care exercise for social care providers

Help improve the care sector

The government's social care reforms are planned for 2023 and we need to work with care providers to understand the Fair Cost of Care in Surrey.

It's an opportunity for care providers and local authorities to secure extra funding and suggest improvements to the care sector.

It affects companies delivering care to residents directly or through local authority contracts.

If you are a care provider in the sectors below, then please get involved. Click on the links below for full details on how to get involved:

What is the Fair Cost of Care exercise?

We have asked care providers to complete a financial modelling exercise, covering most aspects of service delivery and organisational management for the past two financial years.

We will consolidate all responses to provide local authority commissioners a 'median' cost for the actual delivery of care during that time.

The exercise is focused on the cost of providing care including return on:

  • operations
  • capital for residential and nursing services.

This of course is not the same as the price charged which will take other factors into account such as additional or enhanced services people may choose to purchase and the amount people with means are willing to pay for services.

This is our chance to work together to ensure the government understands the true value of social care in our county and move towards paying the fair cost for care.

How does it work?

Please follow the guidance on:

We have organised events and clear communications to help you respond to this exercise.

We ran virtual engagement events in mid-June. Download the Fair Cost of Care presentation to care providers (PDF)

Weekly drop in sessions

Home based care providers

Please join a drop-in session for home based care providers. These will take place on MS Teams. Click on the relevant date and time below to join the meeting:

Residential and nursing homes

Please join a drop-in session for residential and nursing homes. These will take place on MS Teams. Click on the relevant date and time below to join the meeting:

Why should I get involved?

The government has committed to providing additional funding to ensure local authorities can pay a Fair Cost for Care.

Our initial funding allocation in 2022 to 2023 is £2.7million.

If the 'median' cost for the actual delivery of care evidenced by provider returns indicates that Surrey County Council should pay more for care, we can spend at least 75% of this fund to support increasing fees to move towards a fairer cost of care and support market sustainability.

We can spend the remaining 25% on other activities supporting the implementation of the Fair Cost of Care policy agenda. However, we aim to ensure as much funding as possible is targeted at increasing market sustainability.

Risk of losing government funding if you don't respond

If there is a lack of sufficient engagement from Surrey's providers and we don't complete the cost of care exercises successfully, then there is a serious risk that Surrey will not receive any funding from government.

What will the Fair Cost of Care figures be used for?

The Fair Cost of Care figure(s) derived from this exercise will be used:

  • as the costs for individuals progressing towards the new cap on care which is set to be £86,000. Once a resident reaches this threshold, they will no longer be responsible for funding their own Care Act eligible 'care'
  • to support Local Authorities to pay the right contribution for someone's care, which will include supporting many more self-funders as part of the reforms
  • to show the government what finances are needed to support more equitable and sustainable pay for care in each local authority.

It will be vital that following this exercise we work with you, our providers, to look to the future as this exercise will deliver the cost for delivery in 2021 to 2022 but we are being asked to look to the future and plan for paying a Fair Cost of Care over the next 3 to 5 years and beyond.

Key dates

Care homes and homecare providers to submit completed Fair Cost of Care exercises by 29 July 2022.

By 14 October 2022 we need to:

  • explain to the government how we will use any additional funding to move towards paying a Fair Cost for Care over the next three years.
  • set out a clear market appraisal to understand how markets can be supported to be sustainable, robust, and diverse. This includes understanding potential future risks, social care reforms.

More information

Find out more about the Adult social care charging reform (GOV.UK)

Please email asc.fcofc@surreycc.gov.uk if you have any queries.


Files available to download


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