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Understanding the Cost of
Delivering Homecare
Resources, guidance and support to
model the cost of homecare services

Supporting the DHSC market sustainability and 
fair cost of care fund 2022-25

The Department of Health and Social Care market sustainability and fair cost of care fund, launched in 2021, has been designed to aid local authorities in supporting sustainable social care markets, improving the fees paid for care and in preparing for reforms under the 2014 Care Act.

The Homecare Cost Toolkit, developed by ARCC Consulting and sponsored by CHIP, is a key resource in supporting providers and local authorities to understand the true costs of delivering homecare services. 

Determining the fair cost for ​homecare services

On the 16th December 2021 the Department for Health and Social Care (DHSC) released its policy paper: ‘Market Sustainability and Fair Cost of Care Fund: purpose and conditions 2022 to 2023’ with further detailed guidance following on the 24th March 2022.

The 2022-23 funding provided under this policy is designed to ensure local authorities can prepare their markets for reform - particularly the impact of section 18(3) and the right for self-funders to request that care is purchased on their behalf at the ‘usual council rate’.

Between now and 14th October 2022, all councils in England are required to carry out a ‘fair cost of care exercise’ as detailed in this policy paper and further guidance.

In 2021, ARCC Consulting worked alongside the Local Government Association (LGA) and Association of Directors of Adult Social Services (ADASS) regions to develop a costing toolkit for homecare services that can be utilised for this purpose.

This site supports local authorities and homecare providers to use the homecare cost toolkit and complete cost of care exercises within their local area.

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Homecare Cost Toolkit

The Care and Health Improvement Programme (jointly delivered through ADASS and LGA) commissioned ARCC’s intuitive, easy-to-use cost-of-care model to be utilised as a national tool to support councils with future cost of care exercises.


ARCC undertook extensive engagement over a 4-month period from August to November 2021 with care providers and council commissioners.


This engagement included piloting the cost model, demonstration and feedback sessions with around 100 council commissioners and over 150+ care providers. 


Following this engagement, further refinements to the model were made and the FAQs were incorporated into an accompanying 27-page guidance document.


The tool has been distributed nationally and is referenced within the DHSC’s recently published guidance.

Find out more

About the Toolkit

The Homecare Cost Toolkit can be used by anyone who purchases or provides community care services in England.

This online resource is provided to support fair and transparent cost modelling across types of community-based homecare (domiciliary) services.

Who is it for?

Local Authorities, the NHS, and independent providers (including charities and third sector organisations) all need to understand the costs of delivering care at home.

Commissioners and providers can collaborate to develop and model costs across a range of settings.

About this website

This website provides guidance and resources to complete the homecare cost toolkit for use within your own organisation or to share between providers and local authorities.


You can access the resources on this site for free, and register your e-mail address to receive regular updates.

About ARCC

ARCC Consulting supports our clients across the UK by simplifying strategic decision-making and delivering sustainable change​.

Our expertise is based on first-hand knowledge of the day-to-day issues faced across the health and social care system.

Cost of Care Process

This year, all Local Authorities in England must complete a cost of care exercise by October 2022.

This includes gathering key information about independent market costs to understand what it takes to deliver social care locally.

Market Sustainability

In addition to the cost of care, Local Auhtorities must also deliver a provisional market sustainability plan.

This will support councils to identify risks in the local market, with particular consideration given to the further commencement of Section 18(3) of the Care Act 2014.

News and updates

30th June
Live Provider drop-in sessions

Thank you to all those provider who attended our recent live drop-in sessions.  We have now uploaded a video of the session and slides to our Youtube channel, you can find timestamps to the sections covered here.  

LGA, CPA and ARCC: Provider engagement (for commissioners)
29th June

The Local Government Association also held a webinar for local authority commissioners, to support them in engaging with providers to complete the DHSC Fair Cost of Care exercise. Including support and guidance from the Care Provider Alliance and general experience from ARCC Consulting in working with councils and providers to conduct cost of care.  You can find the video here.

Further Guidance from the Local Government Association
7th July

The Local Government Association has also produced detailed FAQs to support commissioners with understanding the DHSC guidance and completing the Fair Cost of Care Exercise, which you can find here.


More updates coming soon!
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