Southwark's Market Sustainability Plan

Section 2: Assessment of the impact of future market changes up to October 2025, for 65+ care home market and 18+ domiciliary care market

What are the anticipated market changes in the 65+ care home market and 18+ domiciliary care market?

  1. There are no anticipated or desired changes in the domiciliary care market, however within the workforce, we hope to see greater capability in meeting increasing acuity of need.  Whilst there are gaps in relation to meeting the language needs within the borough it should be noted that Southwark has over 100 languages spoken amongst its population and the need for spot purchasing in this regard is relatively low in comparison. 
  2. With regard to care home market, the anticipated changes in the market relate to the following:
    • Increase nursing care provision by at least 30 rooms by March 2024
    • Increase nursing care provision by identifying a site for building a new nursing home and delivery-partner by March 2024
    • Open reablement care beds by March 2024
    • By March 2024, compliance with Southwark’s Residential Care Charter (RCC) – over 80% of those in 65+ care homes in the borough living a RCC compliant care home

The impact of further take up of Section 18 (3) of the Care Act 2014

  1. The government’s Fair Cost of Care reform will give self-funders the right to access the same rates that councils pay.   Southwark has a low self-funding population - ranked 6th for the lowest proportion of self-funders in London (12.2%).
  2. Self-funders may look to the council to organise their care so that they access our more competitive fees.  In turn, our social care providers would benefit from greater certainty of their revenue. Given the low number of self-funders in the market, the increased volume if placements for the council will not make a material difference in terms of discharging its place-shaping duties. 
  3. The government’s interest in the social care sector, as expressed in Build Back Better: Our Plan for Health and Social Care, and albeit limited to homecare for adults and care homes for older people, is welcome as part of seeking a fair settlement for the funding of social care through the social care reforms. Use of the social care reforms grant for in-year inflationary pressures is also welcome and therefore the pausing of the reforms until 2025 will provide time for the Treasury to consider how best to fund any increases in payment to providers and the framework for passing these payments on when over and above the fair price that is already being paid by local authorities where some pay the living wage, some pay for travel (if related domiciliary care), etc…

Quantify the expected impact of these changes on the local market (for both 65+ care homes and 18+ domiciliary care).  

  1. As indicated in paragraphs 6 to 8, given the regular tendering of domiciliary services, the council does not expect the social care reforms to affect the market.  Regarding the residential care market, as set out in paragraphs 1 to 5, the council intends for the local market to change and do not anticipate the reforms to affect these changes.

Page last updated: 27 March 2023

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