Essex County Council - Provider Hub
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Guidance for Home Care Providers Requesting Rate Increases under Direct Payments

Below are the steps that home care providers (such as care agencies or Community Micro-enterprises) working for people who receive a Direct Payment from Essex County Council should follow when seeking an increase to their hourly rate.

Please note that this process should only be followed once per financial year. Multiple requests within the same year will not be considered unless there are exceptional circumstances.

Increases will not be backdated so it is important to allow sufficient time to follow the process below once you have made the decision to increase your rates.

Please write directly to the person receiving the Direct Payment (DP) with your proposed new hourly rate and the rationale (e.g. market pressures, staffing costs, etc.).

DP recipients manage their own care and support independently from the Local Authority, so your request needs to go to them directly, and not to Adult Social Care (ASC) or the social worker.

The DP recipient will decide whether they accept the proposed new rate or not. If they do not agree, they may negotiate directly with you or seek alternative arrangements.

If your client agrees to your new rate, they must check whether their current Direct Payment funding is sufficient to cover the increase.

The DP recipient should contact the Service Placement Team (SPT) in Essex County Council by email at: dp.uplifts@essex.gov.uk

The email must include:

  • A copy of your rate increase letter
  • Confirmation that they accept your new rate

The Service Placement Team in Essex County Council will assess whether the requested new hourly rate is in line with market rates and guidance.

  • If the new rate is in line with market rates, SPT will seek budget holder approval directly (you don’t need to do that yourselves) and once approved, they will process the necessary increase to your client’s Direct Payment.
  • If the new rate is not in line with market rates, SPT will escalate to the ASC Service Manager directly for a decision.

The DP recipient will be informed of the outcome. If approved, they may proceed to agree your new rate and notify you accordingly. If it is not approved, the DP recipient may negotiate directly with you or seek alternative arrangements.

Last updated: 05/09/2025