Care arrangement fee proposal

Overview

Leicester City Council is proposing to introduce a new 'care arrangement fee' to cover the council’s administration costs when arranging home-based care and support for people who have savings and/or assets above £23,250.   

Why is change needed? 
The Department of Health and Social Care provided powers to councils in the Care Act 2014 to charge arrangement fees. Establishing a care arrangement fee will bring the council in line with the current guidance.

Other councils have either implemented a similar fee or have plans to do so soon. 

What are we proposing? 
A ‘care arrangement fee’ is a new fee being proposed – to cover the council’s administration costs for arranging care and support. This is currently provided as a free service.

The Care Act 2014 provided new powers to councils to charge arrangement fees when a person: 

1. Has savings and/or assets above £23,250 (not including the property they live in, if they own it)

And 

2. Asks the council to arrange their home-based care. 

The care arrangement fee will be £165.47, which will be subject to annual review in line with inflation. People eligible to pay the fee will be asked to pay this fee each year, until they no longer require the council to arrange their home-based care for them. 

The fee will only apply if you have asked us to make arrangements for your care. If you arrange your own care, this fee will not apply.  

Why your views matter

We are proposing to charge for a service that is currently offered free of charge. We want to hear your views on the proposed changes. No changes can be made until the city mayor and his executive team have considered the findings of this survey. The consultation will run from 11 August to 26 September 2025.