A national overhaul of the adult social care system will be trialled across North Yorkshire next year – but could leave authorities with a budget deficit stretching into the millions.

North Yorkshire County Council is one of five authorities signed up to be part of the pilot scheme from January, before it is rolled out across the country in October 2023.

It will see a cap of £86,000 placed on each individual’s spending on their care in their lifetime, after which the local authority will fund it for as long as needed.

The reforms will also allow 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.

While the result will be a benefit to individuals who get to keep more of their own money and pass it on to their relatives, there is an obvious challenge facing local authorities.

NYCC believes the new system could cost it £45m per year more than it currently pays for adult social care, and it has yet to be told how much money it will be given for the pilot scheme, known as ‘trailblazers’.

Cllr Michael Harrison, executive member for health and adult care, told the Stray Ferret:

“It will benefit residents because no-one is going to pay more [for their care during their lifetime]. Most people are going to pay less, depending on how long they’re in the care system.

“It’s entirely positive for residents from a financial perspective. The rub is, who’s going to fund it?”

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At the same time as the changes to funding are introduced, reforms in care fees are being planned.

They will do away with the current two-tier system, which sees local authorities pay a lower rate than a private individual has to pay for the same care.

Cllr Harrison said it is not yet clear what the new fees would be, but it was inevitable that local authorities would end up paying more so care homes did not see a drop in funding.

“If you reduce their income, the viability of the market is threatened.

“Whatever we’re paying, when it comes down to what the individuals working in social care earn, most of them are either on minimum wage or not far off.”

Cllr Michael Harrison

While those two reforms to funding and charging are being planned, a third financial implication for local authorities will come in the form of overseeing an inevitable rise in the number of people accessing local authority funding towards their care.

“The sheer workload of assessment and brokerage and IT – there’s a huge weight of bureaucracy surrounding that because there’s just going to be more people in the system.

“We don’t know how many people are out there self-funding who will come to us – why would we?

“It’s new costs in a market that’s already under stress. How much, we don’t know.

“A piece of work has been done by the County Council Network and we think this could all cost NYCC up to £45m a year – additional [to what it already spends on care].”

Implementation of the new equal care fees system has recently been delayed by the government. The new funding structure being introduced next year will also only apply to people entering the care system, not those already in it.

While this takes the immediate pressure off NYCC’s budget by phasing in some of the changes, Cllr Harrison and his department’s officers know the full impact will be felt in the future.

The changes are set to be funded by the new health and social care levy, brought into effect in April, which has seen a 1.25% increase in National Insurance. The money raised is to be shared between the NHS – which will take most of it – and adult social care.

However, the current Conservative leadership race has seen almost all of the contenders to be Prime Minister declare they would scrap the levy – yet none has said what they would do about funding the scheme without it.

Meanwhile, Cllr Harrison said it has not yet been confirmed what NYCC’s share of the money will be to fund the new system coming into force in less than six months.

“If we apply the normal ratios, we can usually be pretty confident what our share of funding would be. If we’re right, we’ve got up to a £23m hole in our budget in a council already producing a structural deficit of £50m. It would bankrupt us.”

So why did NYCC agree to be part of the trailblazers project, bringing the problems of the new system forward by nine months?

Cllr Harrison said he believes North Yorkshire County Council has a reputation for being competent and working constructively with central government.

At the same time, North Yorkshire has certain characteristics that can be tested through the pilot scheme: an older than average population, a large, rural landscape, with 500 care providers spread across it, and a relatively high proportion of self-funders accessing services.

The rural nature of the county, along with a higher than average elderly population, make it a useful case study for the government to test how its new system will work.

He also hopes it will be an opportunity to make careers in care better funded and more respected, in line with the council’s Make Care Matter campaign.

“Part of being involved in the trailblazers is to try and shape government policy to understand the challenges and find solutions to those challenges and pilot the changes up front.

“The risk to us is if it’s going to hurt us financially before the rest of the country.”

However, he said, there are clauses in the agreement which will allow NYCC to pull out if the scheme is not working and to revert to the current arrangements until all councils move to the new system after the pilot concludes.

The aim, however, is to go through the trailblazers project with the ear of the government, proving that more money is needed before it can be rolled out further. But will the funding come through?

“I’m hopeful. If it doesn’t, it will bankrupt a number of councils round the country and potentially impact the viability of the whole care sector.”

A council has denied claims its scheme to ensure high social care standards has been designed to “weed out” some care providers.

Hundreds of residential and home care providers and day services have been asked to reapply to be on North Yorkshire County Council’s approved care providers lists.

It is the first stage of a huge transformation of the social care market in North Yorkshire.

A meeting of the authority’s care scrutiny committee heard while some £160m of taxpayers’ money was spent annually buying social care services in the county, the current system allowed providers to set their own rates and give few details about their coverage.

Although many local authorities have been able to set rates for providing care as they dominate their area’s care market, about half of care services in North Yorkshire are paid for privately, so the county council has regularly been forced to watch some providers’ rates soar.

North Yorkshire County Council’s offices in Northallerton.

Councillors were told contracts with care providers would in future be based on a set of service specifications.

Jill Quinn, chief executive of Dementia Forward.

Committee member Jill Quinn, chief executive of Burton Leonard-based charity Dementia Forward, told the meeting completing the new process to be an approved provider was “onerous”.

She added the process appeared to aim to prevent certain providers from being placed on the lists.

She said:

“We understand why it needed revamping and the need for quality markers. Can we reassure people that are applying that it’s not meant to catch them out and that there will be sympathy and support, otherwise I feel we will lose some good people.

“I’m quite seasoned at this and I’m half-way through doing mine and it really is like quite a job.”

The meeting heard trying to maintain quality standards across 155 care home providers and 225 residential and nursing homes was a huge undertaking for the council.

Cllr Michael Harrison, who represents Killinghall, Hampsthwaite and Saltergate and is North Yorkshire County Council’s executive member for adult services and public health, said the process aimed to identify providers who are able to give the level of service that both the 90,000 residents receiving care and the council could afford.

He said:

“We are wanting to make sure the residents who are receiving social care receive a quality that they and we are happy with. We are absolutely not wanting to weed any providers out. ”

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Cllr Harrison said setting clear standards for care was vital, adding the council had moved people out of a residential care home earlier this month after becoming concerned for their safety.

He said:

“That’s a last resort, but it’s also a good example that we’re not prepared just to take any service just because it’s available.

“It’s got to be a service that is safe and appropriate for the individuals receiving it, which include some of the most vulnerable people in society.”

Cllr Harrison (pictured above)  said the changes would ensure a transparent process for people to bid for contracts from the county council and confirm providers were getting the funding they need from the authority to be viable and sustainable, including paying their staff a decent wage.

He added:

“We need to make sure what we pay for the service is delivering what we need. Whilst we need to go through the process, we need to make sure that we don’t put providers off from coming on to our approved provider list because the process is too onerous.”

He said in response to the concerns, the council would offer support to any providers that found the process difficult.

One of the key concerns in the run-up to this year’s shake-up of North Yorkshire local government was that the vast new unitary authority could leave the Harrogate district without a strong voice.

This week, when the dust settled on the local elections and Carl Les, the Conservative leader of North Yorkshire County Council named his new 10-person executive team, the concerns appeared to have merit.

Just one councillor from the district — Michael Harrison, who represents Killinghall, Hampsthwaite and Saltergate, was included on the executive.

It means many of those making key decisions affecting Harrogate, Ripon, Knaresborough, Boroughbridge, Pateley Bridge and Masham might not even have been to some of those places.

For the last 48 years, local political decision making has been shared between North Yorkshire County Council and Harrogate Borough Council.

But with the latter in its death throes, it seems likely that all local political decisions will soon be made at County Hall, the 1906 Grade II listed building in Northallerton, a market town in Hambleton, firstly by North Yorkshire County Council and then by North Yorkshire Council.

The 10-person executive table at Wednesday’s meeting, with Michael Harrison far right.

Just nine of the 47 Conservative councillors on the county council are from the district. So will the Harrogate district not have adequate representation?

‘Strong voice will remain’

Despite the changes, Cllr Harrison told the Stray Ferret he is confident the district will continue to have a strong voice.

He said local councillors will shape the executive’s decisions, firstly through task groups that will inform the transition to the new North Yorkshire Council next year and then through the Harrogate and Knaresborough Area Constituency Committee.

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The six area constituency committees are expected to be given stronger powers next year, possibly over key issues such as planning, as part of Cllr Les’ ‘double devolution’ pledge.  The Lib Dems will have eight of the 13 councillors on the one for Harrogate and Knaresborough.

Cllr Harrison said:

“There will be real power devolved to the area constituency committees and the fact that the Conservatives don’t control the one for Harrogate and Knaresborough won’t stop that.”

Cllr Harrison added that he expects Harrogate Borough Council’s offices at Knapping Mount to continue to play a key operational role when staff transfer to North Yorkshire Council next year because “it’s a modern fit-for-purpose flexible office space”.

Harrogate Borough Council’s offices at Knapping Mount.

The Conservatives were returned to power in North Yorkshire with a greatly reduced majority of four on May 5.

Andrew Williams, an Independent who was elected in Ripon Minster and Moorside, said the more even political composition since the May 5 elections meant the views of opposition parties would be heard more, whereas in the past the previous huge Tory majority meant many issues were just waived through. He said:

“If you go about things in a constructive and positive manner it’s possible to get things done.”

Harrogate town council 

Cllr Williams, who is also the leader of Ripon City Council, said the best way to ensure Harrogate’s voice was heard would be through the creation of a Harrogate town council.

He said Ripon City Council had effectively provided a voice for the city and suggested the same could happen in Harrogate.

He added that such a move would pave the way for more independents.

“People will be looking for voices on a town council that stand up for Harrogate and will appreciate a less partisan approach.”

Five Harrogate Independents failed to come close to winning a division on May 5. But Cllr Williams suggested they got their tactics wrong:

“They started campaigning too late. You can’t just rock up at election time and win.

“To win an election as an Independent you have got to be known by a lot of people and campaign early.”

A referendum could take place in Harrogate to see if people want to create a town council.

But Cllr Harrison said people ought to know what the purpose of a Harrogate town council would be and what the added charge to their council tax precept would be before any vote takes place.

County Hall in Northallerton

Whatever one’s political persuasion, the political scene has been enlivened by the shake-up to local government.

But whether local voices are heard strongly at County Hall, the 1906 Grade II listed building where the county council is based, remains to be seen.

The Stray Ferret asked the Liberal Democrats in Harrogate and Knaresborough to comment for this article but did not receive a response by our deadline.

North Yorkshire County Council has agreed to take part in a pilot for a government system to fund adult social care.

A meeting of the county council’s executive heard becoming one of the country’s first five local authorities to take up the government’s charging reforms programme would create a series of uncertainties for the council in an area which already accounted for almost half of its budget.

Nevertheless, officers underlined that if the new system was not working for the authority there would be opportunities to pull out of the pilot.

Although it will be up to the incoming North Yorkshire Council to make a final decision over joining the Trailblazer pilot, after receiving the unanimous support of the outgoing executive the scheme is likely to see numerous measures brought in.

Everybody who is receipt of care will have the right to have an account where the total cost of care over their lifetime is capped.

An £86,000 cap on the amount residents will need to spend on their personal care is set to be introduced in North Yorkshire from January next year, nine months ahead of elsewhere.

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Also, the point at which people become eligible to receive some financial support from their local authority, will rise to £100,000 from the current £23,250.

The council’s social care executive member Councillor Michael Harrison said it was important North Yorkshire helped shape national policy as it had a disperate care market, with 235 care homes spread across England’s largest county.

However, he said the authority did not know if the changes would entail a huge bill for the council as it remained unaware of how many people currently receiving care in the county funded it themselves.

Alongside uncertainties surrounding the information technology needed, the council remains unclear about the impact on the care market there is a risk to the council in that it could cost more than has been budgeted for.

However, Cllr Harrison said it was clear the new system was weighted more heavily in favour of residents, and particularly those with an average amount of savings, than the government.

He added: 

“It would be a bigger leap in the dark if we weren’t involved in the pilot. There is undoubtedly going to be some unknown consequences and hopefully they will be flushed out during the pilot. 

“It also means we are shaping national policy. This is really important that councils with rural areas rather than urban ones with a straightforward care market where the council is the biggest client help shape the system.

“In North Yorkshire we have a huge say in the market, but there’s so many self-funders, the market will take its own course. If it works the benefits are brought to North Yorkshire residents earlier than the rest of the country.

“This is definitely a step forward but there is still a lot of stress in the care sector. We still think more needs to be done to raise the profile and the conditions of those working in the sector to make it more attractive to people.”