Norfolk County Council seeks new investment into social care estate

Representing Your Voice

You may be aware that Norfolk County Council recently issued a press release regarding their intention to seek new investment in preparation for the conclusion of their current contract with Norse.

On behalf of Adult Social Care Providers in Norfolk, NorCA has responded to this with the following message which was sent to NCC Cabinet Members and senior leadership.

Dear Norfolk County Council cabinet members and colleagues,

We are writing with reference to the ‘Norfolk County Council’s owned Residential Care provision and care contracts post March 2026’ report due to be considered by cabinet on the 2nd June 2025. We would have wished to have engaged with you earlier on this issue but were only alerted to its existence when the papers and the press release were published.

Norfolk Care Association (NorCA) is the independent voice of care providers in Norfolk and Waveney. The future of Norfolk County Council’s owned residential care provision and contractual arrangements with Norse Care are of critical interest to the wider care sector.

Norse and the Wider Care Market

Concern around Norfolk County Council’s arrangements with Norse Care have consistently been raised by independent social care providers. Some key areas of concern highlighted by providers are:

• Norfolk County Council gives priority to its block contract arrangements with Norse, often placing these above alternative care options that may be more appropriate for meeting the specific needs of residents and their families.
• Extra support had been given to Norse to address ‘legacy costs’ and block bed contracts have led to higher effective unit cost rates compared to the wider market, giving Norse an unfairly advantageous market position.
• Norse receives provision of loans and investments from Norfolk County Council that are not available to other care providers.
• Norse’s and Norfolk County Council’s relationship lacks transparency, with Norse appearing to be treated differently from other care providers.

As Norfolk County Council noted when it reviewed the Norse contract in 2017, feedback from providers was that the “Council’s contractual arrangements with Norse Care were having a negative impact on the viability of the market.”

The Care Act 2014 Para 4.35 is explicit that Local Authorities must not undertake activities which threaten the sustainability of the pool of providers able to deliver services of an appropriate quality, setting fee levels below an amount which is not sustainable for providers in the long-term. As a result, we believe that care providers will broadly welcome the end of the current arrangements in March 2026. However, we are keen to see a commitment from Norfolk County Council to ensure that future arrangements do not continue to create an unequal market and that concerns around transparency are addressed.

Referencing the Care Act 2014, there is a duty on the Local Authority, to collaborate closely with relevant partners (including providers) to stimulate a diverse range of appropriate high-quality services, to ensure the market remains vibrant and sustainable.

Future Decision Making

We note the strategic themes and key principles within the cabinet paper and recognise the need for Norfolk County Council to ensure value for money. However, we are disappointed that Norfolk County Council’s obligations under the Care Act 2014 – to ensure care needs are met and to promote the wellbeing of people who receive care and support, and their families – are not central principles in its decision making. At NorCA, our belief is that this must be a key tenant in any strategic decision making.

We emphasise again provider feedback that Norfolk County Council has prioritised the use of its block bed capacity with Norse over considerations of choice and wellbeing for those receiving care and their families.

Care Market in Crisis

We note the closures of the Norse Care facilities All Hallows (48 beds, Jan ‘24), Springdale (36 beds, Oct ‘24), Burman House (30 beds, Dec ‘24), Linden Court (50 beds, April ‘25). The press statements about these closures tell a sad but familiar story: rising costs and insufficient revenues have made it impossible to deliver the necessary care or invest in upgrading and improving facilities. Ultimately, the impact is felt most by the vulnerable residents who rely on this vital care and support.

Norfolk County Council does not pay ‘fair cost of care rates’ for the provision of services it commissions. Depending on the model, current rates fall 20-35% below a ‘fair cost of care’ level. We recognise the financial constraints that Norfolk County Council is under, limiting its ability to pay these rates and welcome its ongoing commitment to pay these rates when funding allows. We reaffirm our commitment to work collaboratively with Norfolk County Council to increase the level of investment into adult social care. However, we would highlight Norfolk County Council’s responsibility to ensure the sustainability of the local care market as outlined within Section 5 of the Care Act 2014.

Norfolk County Council must ensure – and be able to robustly demonstrate – that its decision-making does not place undue emphasis on the future of its own residential care provision at the expense of supporting the wider market, which delivers the majority of care to Norfolk residents.

Residential Care Capacity

The last published adult social care statistics show a 13% residential care vacancy rate for Norfolk . This is higher than the 11% English average. This raises concerns around any action Norfolk County Council may take that could impact the total level and utilisation of care beds within Norfolk. We also believe this highlights the opportunity to alleviate hospital pressures if the system can better work with the full range of residential care providers.

Transparency & Engagement

We are disappointed that NorCA and the wider provider sector have not been openly engaged around the future of Norfolk County Council’s owned Residential Care provision and care contracts post March 2026. Whilst we recognise the commercial sensitivity around such discussions, as Norfolk County Council noted in 2017 “Transparency and trust between Adult Social Services and the market is critical for developing sustainable care patterns for current and future generations.”1

We understand that the ‘Sufficiency Report’ remains unpublished because Norfolk County Council considers it commercially sensitive, but this information would appear to be a key component of Norfolk County Council’s Market Position Statement. Any research the council has on the adequacy of current residential care capacity to meet both present and future needs in Norfolk would greatly support the wider system in understanding and responding to those needs.

What we ask from Norfolk County Council

1. Publish the Sufficiency Report to enable all providers and the wider system to better understand Norfolk County Council’s model of sufficient care for Norfolk.
2. Prioritise its obligations under the Care Act 2014 – to ensure a sustainable care market and focus on the quality of care and the wellbeing of residents – as key principles in decision making regarding Norfolk County Council’s own residential care provision.
3. Commit that any future arrangement with regard to the current Norse Care provided services promote a fair and equal arrangement for all care providers.
4. Engage more publicly and widely on the future of Norfolk County Council’s owned Residential Care provision and care contracts post March 2026, to ensure the broadest range of options can be considered and to ease concerns around any unfair competition.

As always, NorCA remains committed to ongoing dialogue with Norfolk County Council to ensure that residents receive the social care they need from high-quality, sustainable providers, working collaboratively with local authorities and system partners.

Christine Futter MBE

Chair on behalf of the Norfolk Care Association Board