The reduction follows a review of agency costs by Mazars LLP in 2017

Registered nursing care for eligible nursing home residents is funded by the NHS, with the standard weekly rate per patient currently set at £156.25. This was a 40% increase on the 2015 to 2016 rate following an earlier review of the overall rate by Mazars in 2016.

In announcing the 40% increase last year, the government committed to further review the contribution of agency staff costs to the rate. In line with Mazars’ latest evidence on agency costs, the government will now reduce the agency cost component of the rate by £3.29 to allow for lower agency costs. This reduction is partially offset by an uplift in the remainder of the rate by 1.7% to reflect overall nursing wage pressures.

These rates are based on the best evidence currently available to the Department of Health on the costs of providing nursing care in the sector.

The Department of Health plans to consult on the introduction of a regional rate of NHS-funded nursing care ahead of future rate change announcements.

Methodology

The headline agency cost reduction calculated by Mazars (on page 4 of their report) has been uprated based on a 1% uplift. The Department of Health has decided that for the non-agency component of the rate, a 1.7% uplift for overall changes in staffing costs should be applied for a full year (this approach is based on recommendations from the Mazars 2016 review).

The Department of Health has therefore taken the agency rate on page 15 of the most recent Mazars report and applied a consistent 1.7% methodology for 6 months of the year. This is because the agency data runs to September 2016 (see page 35 of report). This ensures the uprate methodology for both the agency and non-agency component of the rate is on a consistent basis, and uprated to April 2017 for overall estimated changes in staffing costs.

The higher rate of NHS-funded nursing care will be reduced to £213.32 per week, the same percentage decrease as applied to the standard weekly rate (this is only relevant for those people who were already on the higher rate in 2007 when the single band was introduced).

John
McDonnell MP, Labour’s Shadow Chancellor,
responding to the Government’s u-turn on its £2 billion NICs rise in the Budget
last week, said:

“This
is a humiliating reversal for the Chancellor forced upon him by Labour’s
opposition. His authority is now shredded after just one Budget, and he tore up
a manifesto commitment to do it.

“We
welcome the Government’s decision to finally listen to Labour’s calls made in
Jeremy Corbyn’s Budget response along with those of business groups like the
Federation of Small Businesses to not go ahead with an unfair £2bn tax rise on
low and middle earners. But they should never have been placed in this position
to start with, and now we face yet another Tory Budget only a year on with a
blackhole in the billions. In 2015, we had the tax credit shambles. In 2016, we
had Personal Independence Payments reversal. Now in 2017 we have the u-turn on
National Insurance Contributions.

"There will be millions of working people who are now breathing a sigh of
relief, but it is the Chancellor who should be holding his breath as
this episode throws up urgent questions that he and the Cabinet must now
answer. 

“Did the
Prime Minister or the rest of the Cabinet, who must have seen the Budget in
advance and known this measure was to be implemented, raise their concerns with
the Chancellor before he announced it, worrying millions of families? It was in
the weekend papers before the Budget so they can’t say they were unaware it was
to happen.

“This is also the second year we have had a Tory Budget with a black hole in it
worth billions. This is not acceptable. What will he do to fill the shortfall
in a Budget he delivered less than a week ago without pursuing unfair tax
increases or further cuts to public services? As the Budget will still see
working people £1,400 worse off under the Government.

"On
the day the Brexit Secretary has admitted that he hasn’t looked into the costs
of the Prime Minister’s negotiating strategy, this is yet more proof that there
is disarray at the top of a government clearly making things up as they go
along.

"We need answers from the Chancellor and accountability at the top of
government. In no workplace would such practices be allowed to continue, and it
should not be allowed from those responsible for the public finances. Labour’s
new roundtable on self-employment will bring together business organisations,
trade unions and self-employed groups to lay out a serious and realistic
strategy to provide a fair deal for the self-employed at a time of major labour
market changes. We are proud to be the party of working people, small
businesses, and the self-employed.”

15 Mar 2017

The Scottish Conservatives have said the justification for a second referendum on independence has “collapsed” following SNP admissions it has dumped plans for immediate EU membership.

In reports today, SNP sources confirmed that an independent Scotland would no longer seek to apply to become a member of EU after a vote for separation.

This is despite the fact that Nicola Sturgeon has used the decision to leave the European Union as a reason for holding another divisive referendum on independence – and has consistently said her plan is to apply for EU membership.

It comes as new polls today reveal that support for independence has fallen.

The same poll shows that only 35 per cent of people want the SNP to spend the next two years diverting attention away from the day job and on another referendum campaign.

Scottish Conservative leader Ruth Davidson said:

“Nicola Sturgeon’s grounds for a referendum have simply given way beneath her.

“We are told an immediate referendum campaign is necessary because we are leaving the European Union.

“Yet the SNP is u-turning on immediate EU membership and saying Scotland wouldn’t seek to become a member.

“If European Union membership is the reason for a referendum, what is the point of holding one if the plan isn’t go back in?

“Nicola Sturgeon’s reckless referendum plan has collapsed under the weight of its own contradictions.

“As even the SNP acknowledges, the UK union is by far Scotland’s most important market place and partner.

“Independence would wreck that union. It is time for the SNP to stop the games, and get back to the day job it has ignored for the last 10 years.”

It was reported today that the SNP no longer wants to immediately reapply for EU membership in the event of independence:
http://www.telegraph.co.uk/news/2017/03/15/nicola-sturgeon-abandons-bid-remain-eu-poll-shows-record-level/

Keir
Starmer MP, Labour’s Shadow Brexit Secretary, responding to David Davis’ admission that the Government has not carried
out an assessment of the economic impact of leaving the EU without a deal, said:

“The
Government is recklessly talking up the idea of crashing out of the EU with no
deal. They have repeated the mantra that ‘no deal is better than a bad deal’.

“But
we now know they have made no assessment of the economic impact of the Prime
Minister failing to secure a deal.

“What’s
clear, from the CBI and others, is that there is no result that would be worse
for the British economy than leaving with no deal; no deal would be the worst
possible deal. The Government should rule out this dangerous and
counter-productive threat before Article 50 is triggered.”

Sharon
Hodgson MP, Labour’s Shadow Minister for Public Health, reacting to the
British Lung Foundation’s report into the economic cost of lung disease in the
UK, said:

“Lung
disease is a major health issue here in our country. The British Lung
Foundation’s eye-opening report today is an important step in highlighting the
staggering and rising cost of this illness. There is not only a financial toll
for our society but for the NHS as well. It is so important that we do all we
can to address the various lung-related illnesses and diseases that people face
and make inroads into improving respiratory health.

“Ministers
urgently need to come up with a credible and comprehensive strategy to minimise
the prevalence of lung diseases in our country, and also to reduce the costs of
this illness on our society and our already stretched NHS.

“The cost of lung disease in the UK is getting
worse by the year and this enormous human and financial impact just can’t be
allowed to continue. The Government must be much more proactive in raising
awareness among the public and investing in preventative health measures which
can head off the risks of lung disease in years to come.”