There are four regional purchasing systems in the North West managed by Placements North West, these include fostering, residential, supported accommodation and SEND provision. 

Each purchasing system has indicative prices listed to guide local authorities and providers when placements are made. Agreement of the indicative prices listed on the purchasing systems is managed through Placements North West and its governance arrangements. 

Once placements are made the contract is between the placing authority and the provider. Placements North West and the regional governance structure have no authority to make any changes to these contracts including agreeing increased fees. 

These are the prices listed on the contract for each setting. Local authorities will expect offers for new placements to be made in line with these prices. 

This approach will sit across all contracts and include:

• Providers will be able to request an uplift annually. 
• New indicative prices will be implemented on 1 April each year. 
• A standard formula will be used to calculate the uplift percentage. This will be comprised of the National Living Wage increase and an average of CPIH for August, September and October in a 70:30 ratio. The final percentage will be shared with providers in December. 
• Providers will be required to submit a completed pro forma by the deadline to have the uplift applied to their prices. Late or incomplete requests will not be accepted. 

Templates for Individual Placement Agreements will be updated to allow placing authorities to follow the North West approach to agree prices for their existing/current placements. 

This will include an option for them to agree to annual uplifts at in line with the process for indicative contract price when the placement is made. 

Decision making on uplifts to existing placements lies with individual Placing Authorities. A pro forma for initial requests is included in the download section of this page. 

With regard to making requests to Placing Authorities we recommend:

• That requests are made early to allow authorities to allow for budget planning and governance processes. Many authorities have indicated they would want to receive requests before mid November each year, earlier in some cases.  
• Providers have prepared a clear justification for the request
• Providers are ready to respond quickly to requests for supporting information. Indication of what information may be required is included at the bottom of the pro forma.

November – percentage communicated based on the agreed formula

December – invitation to submit requests goes to providers

January – deadline for providers to submit requests

March – all new prices confirmed back to providers and authorities advised of new indicative prices

31 March – decisions completed 

1 April – new indicative prices in place

Due to the introduction of regulation for supported accommodation providers from Autumn 2023 we are developing a new contractual arrangement for SaILS providers. 

The North West approach to uplifts will be included in the new contract documents but no changes will be made to the existing DPS or the prices listed on the current contract. 

How can I confirm my current prices as listed on the regional purchasing systems?

You can contact us at placementsnorthwest@stockport.gov.uk to confirm your current prices. Any amendments to services listed, for example adding or removing homes, can be carried out outside this process.

Do I need to submit a pro forma to receive an uplift?

Yes, providers must make a request by completing the pro forma in full and returning to Placements North West via the Chest before the deadline. Incomplete and late pro formas will not be accepted. If we do not receive a pro forma you will not receive an uplift. 

How will I know when I can make a request?

We will send the invitation to submit requests via the Chest portal (also known as Proactis and ProContract) and to the company and referral contracts listed on the purchasing system. 

How will I know the final prices?

We will reconfirm final prices to providers when we have processed your request and you will receive a letter confirming the price we will list on the purchasing system from 1 April.

How will I the uplift be applied?

The uplift will be applied to all fee elements including additional costs listed on the FPS. 

How often can I request an uplift?

You will now be able to request an uplift annually and have it applied on 1 April each year. You will need to request this each year in December or January.

How is this uplift applied?

This request relates to the indicative contract price, for new placements through the purchasing system from 1 April.

How do I request an uplift to existing placements?

We have set out a guide NW approach to uplifts to existing placements in line with this process. However, uplifts to existing placements are agreed at the discretion of the placing authority.

Can I request an uplift later in the year?

No, no requests for uplifts to indicative contract price will be considered outside this process.

How is the percentage determined?

The percentage to be applied is calculated as a 70/30 split calculated as

70% National Living Wage Increase
30% Three-month average of CPIH taken from the published figures in August, September and October
How was the percentage determined?

Providers told us that key challenges they face are around recruitment and retention of staff and foster carers. The weighting towards the National Living Wage increase reflects our commitment to work with providers to build a robust, skilled work force for children in the North West.

What if this percentage is not enough?

If the agreed percentage is not high enough we will consider requests where there is clear evidence of the service not being financial viability. This will be a separate process and will require the submission of detailed financial information. If this may apply please continue to submit this pro forma by the deadline so you do not miss this request window.

Will removal of the fostering discount for placements longer than 36 months affect current placements?

No placements made prior to 1 April 2023 will be affected by this change.