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Changes in regulatory fees for providers confirmed
Following a public consultation last year, the Care Quality Commission (CQC) has outlined the fees that providers of health and adult social care in England will be charged from April 2017 to recover the costs of their regulation.
CQC’s regulatory functions are funded both by fees paid by providers and by grant-in-aid from the Department of Health. Government policy requires CQC to move towards full chargeable cost recovery (FCCR) for all health and adult social care providers in England that it regulates. Over the last few years, CQC’s fees have been increasing and grant-in-aid reducing to achieve FCCR for all sectors.
CQC is making savings over the period to 2019/20. In 2015/16, their budget was £249 million. The budget for 2019/20 will be £217 million, a reduction of £32 million. During 2016/17, CQC has made over £10 million in efficiency savings.
The amounts that providers will pay for their regulation will depend on the type of health or social care they offer, as well as how close their sector is already to meeting the chargeable cost of their regulation in full. Examples of the changes providers can expect to fees in 2017/18 include:
- £163 increase for a care home with 26-30 residents to £4,375 a year.
- £823 increase for a single-location community social care provider (such as a home-care agency) to £2,192 a year.
- £65,375 increase for a NHS trust with an income of £125 million to £225 million to £202,239 a year.
- £1,952 increase for a single-location GP practice with 5,001-10,000 patients to £4,526 a year.
- £113 decrease for a single-location dental practice with four chairs to £837 a year.
CQC’s fees for 2017/18 represent 0.16% of overall indicative turnover of the health and social care market.
David Behan, Chief Executive of the Care Quality Commission, said: “The public are entitled to health and care which is safe, effective, high-quality and compassionate.
“All providers of health and care must be registered in order to provide services. CQC provides the public with independent assurance that services are operating in their interests. The fee paid by providers is the charge for being registered with CQC.”
For media enquiries about the Care Quality Commission, please call the press office on 020 7448 9401 during office hours.
Also, follow the team on Twitter for the latest national announcements: @CQCPressOffice.
Journalists wishing to speak to the press office outside of office hours can find out how to contact the team here: www.cqc.org.uk/media. (Please note: the duty press officer is unable to advise members of the public on health or social care matters).
For general enquiries, please call 03000 61 61 61.
- Last updated:
- 10 March 2017
Notes to editors
- All services registered with the CQC are required under the Health and Social Care Act 2008 to pay fees to cover the costs of CQC’s registration and inspection, and reviews and performance assessment functions. The fees paid by providers, together with grant-in-aid from the government are central to making sure that CQC can carry out the job it is committed to delivering – registering and inspecting health and adult social care providers to ensure they provide care that is safe, effective, caring, responsive to people’s needs and well-led, monitoring them to make sure they continue to do so, and taking action if they do not. For further information about CQC’s fees strategy for 2017/18, including the fees and a summary of the responses submitted during the public consultation, please visit: www.cqc.org.uk/fees
- The CQC is required by HM Treasury to work towards fully covering the chargeable costs of its regulation of providers though the fees that it charges them, thus reducing its grant-in-aid from the government. For further information, please visit: www.gov.uk/government/publications/managing-public-money
- Under section 85 of the Health and Social Care Act 2008 the CQC may, with the consent of the Secretary of State, from time to time make and publish provision requiring fees to be paid.
- As a result of the 2017/18 GMS contract negotiations between NHS Employers (on behalf of NHS England) and the BMA’s General Practitioners Committee, GP practices will receive full reimbursement of their annual CQC fee from NHS England or the relevant CCG, on presentation of their paid invoice.
- Individual fees are, for the majority, no more than 1% of a provider’s turnover and in instances where a provider pays tax, and then fees are tax-allowable, so the differential rate of taxation, whether for a sole trader, partnership or company, will reduce that proportion further.