North Wales councils accused of "stealth tax" care home fees

An investigation by Care Forum Wales (CFW) has revealed the local authorities are among the worst payers in Wales.

The figures are contained in a table published by CFW of the postcode lottery of fees paid across Wales.

They say the rates set by the councils were “budge-driven” and were not based on the true cost of providing care.

Conwy is tenth from bottom, with Denbighshire fourth from bottom.

It means that a 50-bed care home in Torfaen will receive £494,000 a year more for providing residential EMI care than a similar sized home in Denbighshire and equates to £444,600 more than a home in Conwy.

It’s a state of affairs that has Mario Kreft MBE, the Chair of Care Forum Wales which represents around 500 of the country’s independent care providers, fuming.

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Mr Kreft said: “We are calling on all fair minded people in local government – and through the good offices of the Welsh Local Government Association – to ensure, as put to the councillors in places like Merthyr, Torfaen and Gwynedd, they need to urgently review their fees.

“If, however, they continue to act unlawfully, it will put more unacceptable pressure on hard-pressed, hard-working families to make up the difference which is unfair at the best of times but totally intolerable during the current cost of living crisis.

“At the moment the only way providers in places like Flintshire and Wrexham, Denbighshire, Anglesey and Conwy can manage is to go back to the hard-working families of their residents who will suffer financially – it’s a stealth tax.”

Isle of Anglesey County Councillors this week agreed to increase rates by up to 25 per cent

The hikes in Anglesey came hot on the heels of similar increases in Gwynedd where the county council’s Cabinet were advised the fees they paid should recognise the true cost of providing care.

Until recently Gwynedd and Anglesey had worked closely with other North Wales councils when calculating the fees for care homes and nursing homes.

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In the past, there was a pan-North Wales approach when local authorities were setting the rates.

It’s understood that Wrexham and Conwy councils are conducting reviews of the fees they pay but, according to Care Forum Wales, there’s been “a deafening silence” from Denbighshire and Flintshire.

As a result of the decision by Anglesey councillors , the weekly fee per person for providing Nursing EMI care on the island has increased by 25.3 per cent to £896.19.

That means funding for providing the same level of care is £7,772 per person, per year less in Flintshire than Anglesey.

Mr Kreft added: “The decision by Anglesey Council is to be welcomed and is a step in the right direction.

“This fee-fixing cartel in North Wales has been in denial for over a decade.

“Their approach has been to pay the absolute minimum that they were able to get away and I think it has been led by one or two particular strong individuals.

“We know that Wrexham and Conwy have committed to conducting reviews but there’s been a deafening silence from Denbighshire and Flintshire.

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“Their current position is totally untenable because what it’s really doing is it’s discriminating against vulnerable people.

A spokesperson for Denbighshire County Council said: “The Council appreciates the work of independent sector care home providers and their staff and this has been heightened by their work undertaken throughout the pandemic.

“The Council takes a number of factors into account in determining what it pays providers, including the need to keep other essential services operating effectively, while taking account of the financial settlement from Welsh Government and the level of Council Tax.

“Every year a Regional Fees Group reviews the fee setting methodology, taking account of inflation and other increases in costs.

“It is then up to each individual Local Authority, as well as the Local Health Board, to consider the results in setting their fees.

“Denbighshire County Council has acted in accordance with the North Wales regional approach with regards to fees set for Residential and Nursing Homes for 2022/23 and continues to work closely with care providers.

“This includes meeting with providers who indicate fees are not sufficient, working with them to consider their costs and looking at exceptions to the fee model where necessary.”

Conwy County Borough Council were approached for comment.