Stoke-on-Trent City Council will spend £7.12 million on increased care fees this year – but some providers say they are still unsustainable.

Cabinet members at Stoke-on-Trent City Council have agreed a new adult social care fee strategy for 2026/27, which includes above inflation uplifts for home care, residential care, supported living and other services.

They say the new fees reflect the increased costs for providers along with the cash-strapped council's own financial pressures. But some providers have called for higher increases, with 43 telling a consultation the proposed fees are not sustainable.

The council said providers claiming they should be paid more will be invited to provide evidence for this through an 'open book' exercise.

Councillor Lynn Watkins, cabinet member for adult social care, told the cabinet meeting the new fee strategy would meet the council's Care Act duties while putting Stoke-on-Trent's social care system on a 'sustainable footing'.

She said: "Adult social is continuing to see growing demand, increased complexity of need, and cost pressures from the National Living Wage, National Insurance and inflation.

"Within this context the council is proposing a net adult social care budget of £94.3 million, with £7.12 million specifically targeted at provider fee uplifts.

"This is a significant investment but it must sit within a balanced and lawful budget. The strategy is evidence-led, fair and draws on direct engagement with providers, market intelligence, benchmarking with comparable councils and a clear recognition of workforce and inflationary pressures.

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"Crucially, agreeing a fee increase beyond what the council can afford would risk cuts elsewhere, undermine financial resilience and expose the authority to significant governance and legal risks."

Sarah Hill, cabinet member for finance, added: "I'd like to thank the officers for the work that's gone into this. I appreciate how difficult it is to get the balance right between what providers want and what we can afford. But getting the quality of care right is what's crucial."

The fee strategy includes different uplifts for different types of care, with higher increases in service areas where there are capacity constraints or 'market fragility'.

Home care and older people residential care will increase by 4.34 per cent and 4.294 per cent respectively, while enhanced residential care will go up by 12.4 per cent.

Some care homes are currently paid more than the banded rates, reflecting their particular circumstances. Some providers raised concerns the headline care home increases will only apply to banded rates, with the 'above banded' elements only going up by 1.4 per cent – the contractual minimum.

One provider claimed this would equate to an overall uplift of just 3.03 per cent for them, which would not reflect their increased costs.

Council officers believe the proposed fees are 'sustainable', but recognise that some providers may have specific circumstances which could impact their financial sustainability. Those providers will be invited to take part in an open book exercise.

Cabinet members granted authority to officers to reject one unnamed provider's request for an increased uplift and offer them an open book exercise.

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