Government ‘refuses to consider’ compensating North Yorkshire for scrapped care pilot

The government has “refused to consider” funding the costs of additional work on a now scrapped care reform scheme in North Yorkshire.

North Yorkshire County Council was one of six pilot authorities chosen by the Department of Health and Social Care for the project, which would have seen a cap of £86,000 placed on each individual’s spending on their care in their lifetime.

The reforms would also have allowed people to retain up to £100,000 of their own assets and still qualify for funding for their care. The current limit is £23,250.

However, the government has since informed councils the scheme is being abandoned after initially delaying it until October 2025.

The council carried out an overhaul of its IT system as part of the move and looks set to absorb any additional costs associated with staffing into its own budget.

It was awarded £1,159,684 in funding from government as part of the pilot.

But despite this initial funding, the Department of Health and Social Care has refused to contribute to the ongoing costs.

Anton Hodge, assistant director for strategic resources at the council, said in a report due before councillors on Friday:

“Although funding already received to cover costs in 2022/23 will not be required to be repaid, we and other trailblazers have pointed out the ongoing costs of staff already appointed in support of the project and we continue to pursue that aspect.

“However at this stage the Department of Health and Social Care has refused to consider any contribution towards these and therefore any continuing costs will have to be consumed within existing budgets.”

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Senior councillors had previously warned that the pilot could “bankrupt councils” if more funding was not made available.

Cllr Michael Harrison, the Conservative executive member for adult services at the council, said much of the work for the trailblazer was taken on by staff taking on additional responsibilities.

He added:

“The county council was asked by the Department of Health and Social Care to be one of six national sites for testing adult social care charging reforms. Early funding was identified nationally to support this work.

“Given that the bulk of this work involved frontline social care and customer services staff undertaking additional responsibilities, the national funding has been used to enhance existing staffing levels rather than to create separate new posts.”

A Department for Health and Social Care spokesperson said:

“The department is grateful to all the trailblazers for their work on charging reform and has been working closely with them to understand any costs incurred as a result of their work to date.”