DH&SC
Market Sustainability and Improvement Fund (MSIF): provider fee reporting 2024 to 2025
Published 7 October 2024
DHSC have published data and analysis of fees paid to care providers by local authorities as reported as part of the Market Sustainability and Improvement Fund. The publication can be found here – Market Sustainability and Improvement Fund (MSIF): provider fee reporting 2024 to 2025 – and updates the 2023 to 2024 fee rates published in July 2023.
Local authorities were required to report data on local authority fee rates for adult social care providers in the financial years 2023 to 2024 and 2024 to 2025 as part of MSIF. DHSC highlight that the purpose is to find out how much the MSIF grant and broader local government funding is having an impact in helping local care markets through fee uplifts (increases).
This is a report on the average fees paid by local authorities to external care providers during the 2024 to 2025 financial year, and the extent to which they have increased. Local authority feedback indicates that the Market Sustainability and Improvement Fund (MSIF) and wider local government financial settlement has enabled significant uplifts to average fee levels in 2024 to 2025.
Over 85% of local authorities stated that they increased the average fees that they pay to external providers of home care, care homes without nursing for clients aged 65 and over, care homes with nursing for clients aged 65 and over, supported living, care homes without nursing for clients aged 18 to 64, and care homes with nursing for clients aged 18 to 64.
On a weighted average basis, local authorities reported the following increases in fee rates when compared to 2023 to 2024:
home care – an increase of 6.5%
care homes without nursing for clients aged 65 and over – an increase of 6.3%
care homes with nursing for clients aged 65 and over – an increase of 6.1%
supported living – an increase of 6.4%
care homes without nursing for clients aged 18 to 64 – an increase of 6.0%
care homes with nursing for clients aged 18 to 64 – an increase of 6.6%
