Approach to Inflation of 21-22 Costs
Providers have also raised that since filling out this tool, inflation has increased further than stated in the tool. Particularly providers have advised that they are seeing considerable increases in food & energy costs.
Any assumptions made for this exercise need to be caveated as nationally there is uncertainty around inflation and the cost of goods and services. This means that predicting future inflation is very difficult and needs to be reviewed in line with the council’s policy to uplifts.
Where providers have listed a % uplift for 2022-23 by line level, the average and median of the uplifts can be seen in the table below.
| Uplift % 22/23 to 21/22 | Average | Median |
|---|---|---|
| Care Home occupies beds without nursing: Final total | 2% | 2% |
| Care Home occupied beds without nursing with dementia: Final Total | N/A | N/A |
| Care Home occupied beds with nursing: Final Total | 6% | 8% |
| Care Home occupied beds with nursing, dementia: Final Total | 7% | 8% |
Hounslow has decided to apply an overall uplift of 8%. This decision was based on the above data in addition to the average rate requests submitted to the LA during Q1-Q2 2022/23 for this cohort and CPI data.
Inflation uplifts applied to bed categories
| Category of Bed | Uplift applies |
|---|---|
| Care Home occupied beds without nursing: Final Total | 8% |
| Care Home occupied beds without nursing with dementia: Final Total | 8% |
| Care Home occupied beds with nursing: Final Total | 8% |
| Care Home occupied beds with nursing, dementia: Final Total | 8% |
Weekly median rates pre and post inflation adjustment
| Bed Type | Current Medians (21-22 Data) | Applying agreed method of inflation rate (8%) Medians |
|---|---|---|
| Care Home occupied beds without nursing: Final Total | £1,156.70 | £1,249.24 |
| Care Home occupied beds without nursing with dementia: Final Total | £1,156.70 | £1,249.24 |
| Care Home occupied beds with nursing: Final Total *inc FNC | £1,338.30 | £1,445.36 |
| Care Home occupied beds with nursing, dementia: Final Total *inc FNC | £1,338.30 | £1,445.36 |
