Guidance

Market Sustainability and Improvement Fund Grant Determination 2023 to 2024

Updated 4 April 2023

Applies to England

Adult Social Care Market Sustainability and Improvement Fund Grant Determination (2023-24): No 31/6646

The Parliamentary Under Secretary of State for Local Government and Building Safety (鈥渢he Minister鈥),听in exercise of the powers conferred by section 31 of the Local Government Act 2003, makes the following determination:听

Citation

1. This determination may be cited as the Adult Social Care Market Sustainability and Improvement Fund Grant Determination (2023-24): No 31/6646.

Purpose of the grant

2. The purpose of the grant is to provide support to local authorities in England towards expenditure lawfully incurred or to be incurred by them. It is intended to enable local authorities to make tangible improvements to adult social care, in particular to increase social care capacity through reducing social care waiting times, increasing fee rates, and increasing workforce capacity and retention.

顿别迟别谤尘颈苍补迟颈辞苍听听

3. The Minister determines as the authorities to which grant is to be paid and the amount of grant to be paid, the authorities and amounts which are set out in Annex A.

4. The grant will be paid in monthly instalments.

Grant conditions听听

5. Pursuant to section 31(4) of the Local Government Act 2003, the Minister听determines that the grant will be paid subject to the conditions specified in Annex听B.

6. Before making this determination in relation to local authorities in England, the Parliamentary Under Secretary of State obtained the consent of the Treasury.

Signed by authority of the Parliamentary Under Secretary of State for Local Government and Building Safety.

Lucy Pedrick, Deputy Director
Department for Levelling Up, Housing and Communities
April 2023

Annex A: Adult Social Care Market Sustainability and Improvement Fund allocations to local authorities 2023-24

Local authority* Allocations to local authorities 2023-24 from the 拢162m portion Allocations to local authorities 2023-24 from the 拢400m portion Allocations to local authorities 2023-24
Barking and Dagenham 拢616,316 拢1,521,769 拢2,138,085
Barnet 拢977,055 拢2,412,482 拢3,389,537
Barnsley 拢835,921 拢2,064,002 拢2,899,922
Bath and North East Somerset 拢492,583 拢1,216,255 拢1,708,838
Bedford 拢419,048 拢1,034,687 拢1,453,735
Bexley 拢626,653 拢1,547,291 拢2,173,944
Birmingham 拢3,780,199 拢9,333,826 拢13,114,025
Blackburn with Darwen 拢515,981 拢1,274,027 拢1,790,009
Blackpool 拢609,987 拢1,506,141 拢2,116,128
Bolton 拢938,319 拢2,316,837 拢3,255,157
Bournemouth, Christchurch and Poole 拢1,181,178 拢2,916,490 拢4,097,669
Bracknell Forest 拢244,239 拢603,060 拢847,299
Bradford 拢1,550,616 拢3,828,682 拢5,379,299
Brent 拢906,550 拢2,238,395 拢3,144,944
Brighton and Hove 拢829,346 拢2,047,767 拢2,877,112
Bristol 拢1,369,147 拢3,380,610 拢4,749,757
Bromley 拢803,557 拢1,984,092 拢2,787,649
Buckinghamshire Council 拢1,128,140 拢2,785,531 拢3,913,671
Bury 拢551,280 拢1,361,185 拢1,912,465
Calderdale 拢621,416 拢1,534,361 拢2,155,778
Cambridgeshire 拢1,568,738 拢3,873,427 拢5,442,166
Camden 拢867,889 拢2,142,937 拢3,010,826
Central Bedfordshire 拢584,531 拢1,443,287 拢2,027,818
Cheshire East 拢979,180 拢2,417,729 拢3,396,910
Cheshire West and Chester 拢990,373 拢2,445,365 拢3,435,738
City of London 拢32,934 拢81,318 拢114,251
Cornwall 拢1,885,534 拢4,655,640 拢6,541,174
Coventry 拢1,046,967 拢2,585,103 拢3,632,070
Croydon 拢945,904 拢2,335,565 拢3,281,469
Cumberland** 拢1,034,121 拢2,272,142 拢3,306,263
Darlington 拢338,291 拢835,286 拢1,173,577
Derby 拢775,284 拢1,914,282 拢2,689,566
Derbyshire 拢2,448,432 拢6,045,510 拢8,493,941
Devon 拢2,413,484 拢5,959,221 拢8,372,705
Doncaster 拢1,019,169 拢2,516,466 拢3,535,635
Dorset Council 拢1,152,060 拢2,844,591 拢3,996,651
Dudley 拢1,054,094 拢2,602,701 拢3,656,795
Durham 拢1,905,104 拢4,703,959 拢6,609,063
Ealing 拢956,859 拢2,362,614 拢3,319,473
East Riding of Yorkshire 拢976,029 拢2,409,947 拢3,385,976
East Sussex 拢1,745,314 拢4,309,418 拢6,054,732
Enfield 拢876,579 拢2,164,393 拢3,040,971
Essex 拢3,995,659 拢9,865,824 拢13,861,482
Gateshead 拢764,967 拢1,888,808 拢2,653,775
Gloucestershire 拢1,707,739 拢4,216,641 拢5,924,380
Greenwich 拢897,937 拢2,217,128 拢3,115,065
Hackney 拢948,377 拢2,341,672 拢3,290,049
Halton 拢431,414 拢1,065,220 拢1,496,634
Hammersmith and Fulham 拢619,907 拢1,530,635 拢2,150,542
Hampshire 拢3,209,285 拢7,924,161 拢11,133,447
Haringey 拢775,037 拢1,913,670 拢2,688,707
Harrow 拢654,634 拢1,616,381 拢2,271,015
Hartlepool 拢338,258 拢835,206 拢1,173,464
Havering 拢678,836 拢1,676,138 拢2,354,975
Herefordshire 拢594,414 拢1,467,689 拢2,062,103
Hertfordshire 拢2,790,730 拢6,890,692 拢9,681,422
Hillingdon 拢702,748 拢1,735,179 拢2,437,927
Hounslow 拢674,556 拢1,665,570 拢2,340,125
Isle of Wight 拢517,330 拢1,277,359 拢1,794,689
Isles of Scilly 拢8,546 拢21,102 拢29,648
Islington 拢867,975 拢2,143,148 拢3,011,123
Kensington and Chelsea 拢585,094 拢1,444,676 拢2,029,770
Kent 拢4,160,993 拢10,274,057 拢14,435,050
Kingston upon Hull 拢980,737 拢2,421,572 拢3,402,308
Kingston upon Thames 拢386,896 拢955,298 拢1,342,194
Kirklees 拢1,255,420 拢3,099,802 拢4,355,222
Knowsley 拢659,513 拢1,628,426 拢2,287,939
Lambeth 拢1,018,518 拢2,514,860 拢3,533,379
Lancashire 拢3,724,752 拢9,196,920 拢12,921,672
Leeds 拢2,234,742 拢5,517,882 拢7,752,625
Leicester 拢1,062,273 拢2,622,897 拢3,685,171
Leicestershire 拢1,629,617 拢4,023,746 拢5,653,363
Lewisham 拢923,320 拢2,279,803 拢3,203,124
Lincolnshire 拢2,273,366 拢5,613,250 拢7,886,616
Liverpool 拢1,996,048 拢4,928,513 拢6,924,560
Luton 拢531,984 拢1,313,541 拢1,845,525
Manchester 拢1,799,584 拢4,443,416 拢6,243,000
Medway 拢673,563 拢1,663,119 拢2,336,682
Merton 拢504,839 拢1,246,516 拢1,751,356
Middlesbrough 拢511,608 拢1,263,229 拢1,774,837
Milton Keynes 拢612,953 拢1,513,463 拢2,126,416
Newcastle upon Tyne 拢1,013,061 拢2,501,385 拢3,514,445
Newham 拢991,179 拢2,447,355 拢3,438,534
Norfolk 拢2,820,608 拢6,964,463 拢9,785,071
North East Lincolnshire 拢526,304 拢1,299,517 拢1,825,821
North Lincolnshire 拢513,620 拢1,268,198 拢1,781,819
North Northamptonshire 拢851,913 拢2,103,488 拢2,955,401
North Somerset 拢623,663 拢1,539,909 拢2,163,572
North Tyneside 拢695,977 拢1,718,461 拢2,414,438
North Yorkshire** 拢1,635,931 拢4,039,335 拢5,675,265
Northumberland 拢1,026,980 拢2,535,754 拢3,562,734
Nottingham 拢1,046,269 拢2,583,380 拢3,629,648
Nottinghamshire 拢2,380,772 拢5,878,450 拢8,259,223
Oldham 拢757,589 拢1,870,591 拢2,628,180
Oxfordshire 拢1,546,799 拢3,819,258 拢5,366,057
Peterborough 拢535,721 拢1,322,769 拢1,858,490
Plymouth 拢866,771 拢2,140,174 拢3,006,945
Portsmouth 拢601,032 拢1,484,029 拢2,085,060
Reading 拢384,414 拢949,170 拢1,333,584
Redbridge 拢753,284 拢1,859,960 拢2,613,244
Redcar and Cleveland 拢486,152 拢1,200,375 拢1,686,527
Richmond upon Thames 拢446,068 拢1,101,403 拢1,547,472
Rochdale 拢748,142 拢1,847,264 拢2,595,406
Rotherham 拢908,069 拢2,242,145 拢3,150,214
Rutland 拢91,611 拢226,200 拢317,812
Salford 拢889,426 拢2,196,113 拢3,085,539
Sandwell 拢1,247,351 拢3,079,880 拢4,327,231
Sefton 拢1,029,298 拢2,541,475 拢3,570,773
Sheffield 拢1,826,053 拢4,508,772 拢6,334,825
Shropshire 拢940,831 拢2,323,039 拢3,263,870
Slough 拢347,931 拢859,088 拢1,207,019
Solihull 拢587,490 拢1,450,594 拢 2,038,084
Somerset** 拢1,685,858 拢4,162,612 拢5,848,470
South Gloucestershire 拢631,156 拢1,558,409 拢2,189,565
South Tyneside 拢617,801 拢1,525,434 拢2,143,235
Southampton 拢748,836 拢1,848,977 拢2,597,812
Southend-on-Sea 拢556,200 拢1,373,334 拢1,929,534
Southwark 拢1,060,187 拢2,617,746 拢3,677,933
St. Helens 拢649,928 拢1,604,759 拢2,254,687
Staffordshire 拢2,390,826 拢5,903,274 拢8,294,100
Stockport 拢866,170 拢2,138,692 拢3,004,863
Stockton-on-Tees 拢570,536 拢1,408,731 拢1,979,267
Stoke-on-Trent 拢899,030 拢2,219,826 拢3,118,856
Suffolk 拢2,201,444 拢5,435,665 拢7,637,110
Sunderland 拢1,058,250 拢2,612,963 拢3,671,212
Surrey 拢2,696,380 拢6,657,729 拢9,354,109
Sutton 拢497,666 拢1,228,804 拢1,726,470
Swindon 拢519,247 拢1,282,092 拢1,801,340
Tameside 拢778,974 拢1,923,394 拢2,702,368
Telford and Wrekin 拢522,646 拢1,290,484 拢1,813,130
Thurrock 拢441,588 拢1,090,340 拢1,531,928
Torbay 拢559,291 拢1,380,966 拢1,940,258
Tower Hamlets 拢988,851 拢2,441,608 拢3,430,459
Trafford 拢638,351 拢1,576,174 拢2,214,525
Wakefield 拢1,112,991 拢2,748,126 拢3,861,117
Walsall 拢966,482 拢2,386,375 拢3,352,856
Waltham Forest 拢734,867 拢1,814,487 拢2,549,354
Wandsworth 拢875,783 拢2,162,427 拢3,038,209
Warrington 拢556,023 拢1,372,896 拢1,928,918
Warwickshire 拢1,508,344 拢3,724,307 拢5,232,651
West Berkshire 拢338,106 拢834,829 拢1,172,935
Westmorland and Furness** 拢658,253 拢1,906,561 拢2,564,815
West Northamptonshire 拢982,135 拢2,425,025 拢3,407,160
West Sussex 拢2,229,830 拢5,505,753 拢7,735,583
Westminster 拢893,132 拢2,205,265 拢3,098,398
Wigan 拢1,074,750 拢2,653,705 拢3,728,455
Wiltshire 拢1,230,568 拢3,038,440 拢4,269,008
Windsor and Maidenhead 拢321,609 拢794,095 拢1,115,704
Wirral 拢1,215,250 拢3,000,617 拢4,215,866
Wokingham 拢271,073 拢669,315 拢940,388
Wolverhampton 拢929,122 拢2,294,129 拢3,223,251
Worcestershire 拢1,609,622 拢3,974,375 拢5,583,997
York 拢493,965 拢1,219,668 拢1,713,633
England 拢562,000,000

*Funding paid to local authorities with responsibility for adult social care only

**On 1 April 2023 the following unitary authorities will be established:

  • Cumberland, comprising the areas of Allerdale, Carlisle, Copeland and part of Cumbria County Council.

  • Westmorland and Furness, comprising the areas of Barrow-in-Furness, Eden, South Lakeland and part of Cumbria County Council.

  • North Yorkshire, comprising the areas of Craven, Hambleton, Harrogate, Richmondshire, Ryedale, Scarborough and Selby.

  • Somerset, comprising the areas of Mendip, Sedgemoor, South Somerset and Somerset West and Taunton.

Annex B: Grant conditions

In this Annex:

  • 鈥渢he Department鈥 means the Department of Health and Social Care
  • 鈥渇ee rate鈥 means the rate determined and paid by a local authority to providers for care and support services.
  • 鈥済rant鈥 means the amounts set out in Annex A for each recipient authority
  • 鈥渞ecipient authority鈥 means the relevant local authority as listed on Annex A to this determination
  • 鈥淢arket Sustainability Plan鈥 means a written assessment of the current rates the local authority pays for care, the impact this is having on the market and the potential future risks in the local market. The plan will also need to outline mitigating actions for managing these risks and developing a more sustainable market. For the purpose of the grant, recipient authorities will be required to submit an update to the Market Sustainability Plans that they submitted as part of the Market Sustainability and Fair Cost of Care Fund in March 2023. The update will include a capacity plan.
  • 鈥淢inister鈥 means the Parliamentary Under Secretary of State for Local Government and Building Safety

This grant determination is supported by the Market Sustainability and Improvement guidance that sets out further detail on the grant and recipient authorities responsibilities in administering it.

Use of the grant

1. The first condition is that the recipient authority must allocate its full grant allocation on adult social care, as part of a substantial increase in planned adult social care spending.

a. The maintained 拢162 million element of the grant must be used to continue to support the progress local authorities and providers have already made in 2022-23 on increasing fee rates to move towards paying a fair cost of care.

b. The additional 拢400 million element of the grant must be used on adult social care, in accordance with condition 2 below.

2. The second condition is that the 拢400 million element of the grant must be used to make improvements in at least one of the Target Areas. The Target Areas are the priority areas, as specified by the Department, to improve through use of the grant. The Department will monitor these areas through specified performance metrics in order to assess levels of improvement. The Target Areas are:

  • Increasing fee rates paid to adult social care providers in local areas
  • Increasing adult social care workforce capacity and retention
  • Reducing adult social care waiting times

a. Further information on each of the Target Areas is provided in the supporting Market Sustainability and Improvement Fund guidance.

b. In accordance with condition 3 below the recipient authority must provide evidence of improvement in at least one of the Target Areas by reporting on performance metrics which are set out in the Market Sustainability and Improvement Fund guidance provided by the Department. The Target Areas chosen by the recipient authority should support the most pressing needs in their local area. The recipient authority must confirm in their Initial Report which of the Target Areas it will be aiming to improve alongside planned spend on each.

c. In addition to this, recipient authorities should provide assurance that other target areas have not worsened and as such, recipient authorities must report on all the performance metrics as set out in the Market Sustainability and Improvement Fund guidance provided by the Department.

d. The Department will provide guidance, templates and wider, ongoing support to help authorities meet the grant conditions and achieve the purpose of the funding as set out in paragraph 2 of the grant determination.

3. The third condition is that recipient authorities must provide:

a. An Initial Report by 11:59pm on 24 May 2023 which must include:

i. Confirmation that the recipient authority鈥檚 share of the grant has been allocated in full to adult social care;

ii. Confirmation that the recipient authority鈥檚 share of the continued 拢162 million component of the fund has been used to maintain fee uplifts originally made as part of the 2022-23 Market Sustainability and Fair Cost of Care Fund;

iii. Confirmation of which of the three Target Areas the authority will be aiming to improve alongside planned spend on each; and

iv. Reporting of all the required performance metrics specified in the guidance.

b. A Final Report by 11:59pm on 22 May 2024 which must include:

i. Confirmation that the grant has been spent in full on adult social care;

ii. Confirmation that the recipient authority鈥檚 share of the continued 拢162 million component of the fund has been used to maintain fee uplifts;

iii. A completed 鈥楽pend Return鈥 section of the Final Report template; and

iv. A record of all the performance metrics specified in the guidance.

c. Recipient authorities should make use of any templates provided by the Department.

4. The fourth condition is that recipient authorities must provide an update to their Market Sustainability Plan by 11:59pm on 30 June 2023, which involves providing a capacity plan. The exact data that the authority must input into the plan is set out in the supporting guidance.

5. Final templates for the Initial Report, Final Report and updated Market Sustainability Plan will be provided by the Department in due course. Final reports must be approved by the recipient authority鈥檚 chief executive or s151 officer. To assist the recipient authority with the additional cost of completing the returns, it may use up to a limit of, and must not exceed, the highest value of either:

  • 拢10,000 of their overall grant allocation, or,
  • 0.3% of their overall grant allocation

6. The contact details for submitting the returns at conditions 3 and 4 are: MSIFCorrespondence@dhsc.gov.uk. The Department reserves the right to provide for a later date for submission, update the means by which returns are submitted, and may provide alternative methods for submission in future, including a web-based system for greater efficiency.

7. Where a recipient authority identifies Target Areas where the performance metrics do not indicate any improvement, Officials from the Department may engage with the recipient authority to understand what additional support may be required to meet the grant conditions or to explain why the performance metrics indicate no improvement. This may include asking the recipient authority to provide more performance data, repeat exercises, or work with a neighbouring recipient authority with a similar market to ascertain the reason for any failure to improve.

8. The Secretary of State for Health and Social Care may at any time require a further external validation to be carried out by an appropriately qualified independent accountant or auditor, on the use of the grant.

Payment arrangements

9. The grant funding set out in Annex A will be paid in monthly instalments. The Minister reserves the right to alter the timing or amount of grants payments.

10. Funding from the grant must be spent within the designated financial year. If any funding from the grant is not spent within the designated financial year, the Minister may require repayment of the grant monies paid, as may be determined by the Minister and notified in writing to the recipient authority.

Financial management听

11. A recipient authority must maintain a sound system of internal financial controls.

12. If a recipient authority has any grounds for suspecting financial irregularity in the use of any grant paid under this funding agreement, it must notify the Department immediately, explain what steps are being taken to investigate the suspicion and keep the Department informed about the progress of the investigation. For these purposes 鈥渇inancial irregularity鈥 includes fraud or other impropriety, mismanagement, and the use of grant for purposes other than those for which it was provided.

Breach of conditions and withholding future funding

13. If the recipient authority fails to comply with any of these conditions, or if any overpayment is made under this grant, or any amount is paid in error, or any unspent funding is not returned, the Minister may reduce, suspend or withhold grant payments or require the repayment of the whole or any part of the grant monies paid, as may be determined by the Minister and notified in writing to the recipient authority. Such sum as has been notified will immediately become repayable to the Minister who may offset the sum against any future amount due to the recipient authority from central government.

14. The list below contains examples of a breach of the grant conditions:

a. Inappropriate use of funding, or no evidence of funding having been spent on the specified purpose.

b. Failure to submit one or more of the documents as specified in paragraphs 3-4, and/or submission of incomplete documents, and/or documents that are not submitted by the deadline.

c. No improvements in any of the target areas. In this case, as set out in Condition 2 above, the Department will take steps to provide authorities with the opportunity to explain how they have used the funding and any additional context before considering further measures.

d. An updated Market Sustainability Plan that does not include a full capacity plan as required by the relevant template.