Liverpool City Council has started consultation over a proposed above inflation increase in social care fee rates which would see the local authority spending an additional £4.3 million a year.

The Cabinet last week agreed to engage with providers over an across-the-board increase for rates paid for home care and residential and nursing homes.

The increase is to help providers cover the increased National Living Wage of £7.50 per hour for over 25s, and allow a reasonable amount on top for administration costs and return on investment.

The council is proposing upping the hourly fee paid to home care providers by four percent to £13.62 an hour.

Weekly care home fee rates are also set to increase by more than three percent, with residential care going up from £394.33 to £407.16, dementia residential care from £487.23 to £503.94, while nursing care is proposed to go up from £564.10 to £600.21 and nursing dementia care from £646.24 to £661.78.

Cabinet member for adult social care, Councillor Paul Brant, said: “Care workers do a tremendous job keeping some of our most vulnerable residents safe and it is right and proper that we make sure they get a pay rise.

“In calculating the revised rates we have looked closely at the amount paid by other local authorities in the region, as well as taking into account the increasing costs of operating in the care sector.

“Adult social care is our biggest area of spend, costing significantly more than we raise in Council Tax. The many millions we will spend on care next year will help to ease pressure from rising demand in the city.”

When the new fee rates are agreed, they will be backdated to 1 April 2017.