A report will go before Cabinet (Resources) Panel tomorrow (Wednesday 22 February, 2023) with councillors recommended to approve the proposed increase to 'ensure sufficiency and sustainability across adult social care markets'.
Nursing care providers supporting older people and older people with dementia will receive a 20.36% increase in their hourly rate if the proposals are given the green light.
A 12% increase is planned for residential care providers supporting older people and older people with dementia, residential and nursing providers supporting people aged under 65, and for Extra Care providers.
The hourly rate paid to home care providers, for home based respite, to supported living services and providers of community activities for older people and adults with complex needs will rise by 11.85%.
And the amount paid to agencies and personal assistants via Direct Payments, and individual service funds, is also set to increase by 11.85%.
If the proposals are approved, the new fee structure will be introduced on 3 April, 2023.
Councillor Linda Leach, Cabinet Member for Adult Services, said: "Our city's adult social care providers have a vital role to play in supporting our most vulnerable residents, and we are determined to do all we can to support the sector.
"We know that, like other employers, adult care and support providers are continuing to face a perfect storm of rising costs and recruitment issues, and these aren't going to go away any time soon.
"The council increased the hourly rate it pays adult social care providers by up to 10% in 2022 to 2023, but in the next financial year we want to go even further, with significant increases of between 11.85% and 20.36%.
"We have engaged closely with local providers and their feedback has informed our proposals, alongside other factors such as the increase to the National Living Wage, the continuing high levels of inflation and our legal duties as a council to support a sustainable market while setting a balanced budget.
“If our proposals are approved, it means we will be putting a further £10.1 million into adult social care next year, bringing our total investment in adult social care to over £95 million in 2023 to 2024.”
She added: "I can assure providers we will do everything in our power to continue to support them. This includes continuing to lobby for the long term reforms to adult social care that would enable us to provide assurances of income flows for our providers and invest in quality and training.
"In the meantime, we and our partners will continue to support the adult social care sector through our Wolverhampton Cares initiative, not only financially, but also by helping providers recruit staff and, equally importantly, keep the fantastic workers they already have."
To find out more about the Wolverhampton Cares commitment, launched to support providers and unpaid carers through the Covid-19 pandemic and beyond, please visit Wolverhampton Cares.