Policy paper

Health and Care Bill: provision of social care services – financial assistance (provider payments)

Updated 10 March 2022

This fact sheet explains how the government plans to expand existing powers so that the Secretary of State is able to make direct payments to social care providers.

Background

The COVID-19 pandemic has demonstrated the need for speed and flexibility in providing support to the social care sector. COVID-19 has also clearly demonstrated how unforeseen and quickly changing circumstances may require fast intervention.

We are therefore legislating to amend powers in the Health and Social Care Act 2008, which currently allow the Secretary of State to make payments to not-for-profit bodies engaged in the provision of health or social care services in England. The existing powers will be widened to allow direct payments to be made to any bodies which are engaged in the provision of social care services in England, regardless of how they are funded.

The Bill will not prescribe in what circumstances the power can be used, or what conditions or process may be attached to any financial assistance. Instead, this power will act as a legal foundation for future policy proposals.

The type of payment will be determined on a case-by-case basis. However, we are clear this power will not be used to amend or replace the existing system of funding for adult social care, where funding for state provision is provided via local authorities, largely through local income, and supplemented by government grant. Instead, it will only be used in in response to or emergency situations or to implement specific policy.

What the Bill will do

The Bill will make amendments to existing powers for the Secretary of State to make payments to those engaged in providing social care in England, or those who provide services which support the provision of social care.

These changes will allow the Secretary of State to make payments to any provider of social care in England, regardless of how they are funded or whether they operate on a for-profit basis.

This will allow more efficient support to be provided directly to the whole sector, whether to respond to emergency circumstance like those we have seen during the pandemic, or to implement specific policy.

In line with the existing legislation, this power can also be used to provide financial assistance for the establishment of a body to provide social care or supporting services.

The legislation also sets out a number of circumstances in which the Secretary of State can delegate this power to others, in particular Special Health Authorities.

How these provisions will help to reduce bureaucracy

This power will allow for quick and efficient intervention by the Secretary of State where required to support the sector. Previously, such as during the COVID-19 pandemic, financial assistance had to be delivered through local authorities.

Direct payments will allow money to be passed to providers much more quickly and in a more targeted manner.

This change is not being made with the expectation of any specific payment being made, instead this power is a legal tool that can be used to deliver financial support as needed in the future. This may be for emergency purposes such as those we have seen in the pandemic, or to deliver specific policy on a national basis.

This power does not replace or amend the existing system for providing regular, day to day, funding for social care. This will continue to be allocated through local authorities.

Further information

Department of Health and Social Care, Integration and innovation: working together to improve health and social care for all, February 2021