A judge has dismissed a judicial review brought by national care provider body Care England against a local authority it said had breached its Care Act duties by setting fees too low.
Care England argued that Essex council had fixed the fees it offered to providers under a new commissioning framework at a level “significantly below their costs of care”.
It said this contravened section 5 of the Care Act, which stipulates local authorities must promote an efficient and effective care market and “have regard” to ensuring its sustainability.
The issue was highlighted last month by a report from the Competition and Markets Authority (CMA) which found care home operators had been charging self-funding residents an average of 41% more than council-funded ones in order to remain solvent.
Source : ‘Care Act breach’ judicial review over provider fees dismissed : Community Care