Under the Care Act 2014, local authorities have a duty to manage local care markets. The vast majority of care workers are employed by private sector providers which set their terms and conditions, including renumeration for travel costs, independently of Government. Local authorities work with care providers to determine fee rates, which should take account of employment costs, based on local market conditions.
We are committing £1.36 billion to the Market Sustainability and Fair Cost of Care Fund. The Fund will support local authorities to prepare markets for reform and move towards paying providers a fair cost of care. The Government continues to work with local government and care providers to understand the impact from challenges such as energy price rises and inflationary pressures.