Liverpool City Council is set to increase the rates paid to the care sector, to help with the recruitment and retention of staff.
It follows a consultation with providers whose staff help and support around 11,000 people at home and another 3,500 living in residential and nursing homes.
A report to the Cabinet on Friday 22 March is proposing an increase which will cost just over £9 million, paid for mainly through council funding, with £1.9 million of the total coming from Government grants.
There will be an increase of 84 pence in the price paid per hour to home care companies – up from £14.32 to £15.16.
Residential care for older people will go up from £426.01 to £445.64 per week, and residential care for people with dementia will increase from £527.97 to £552.99.
Nursing care for older people will increase from £465.95 to £487.63 per week, and nursing care for those with dementia will go up from £530.75 to £555.32.
There will also be rises for companies who provide staff in supported living, extra care and day services, and those who are employed by people receiving direct payments.
If approved, the new rate will be introduced from 1 April 2019 for all providers.
In addition, to reduce acute hospital and emergency care pressures, additional resources allocated from central government will be used to provide additional payments to providers of home care, older people residential and nursing care and extra care, back dated to 7 January.
Cabinet member for adult social care, Councillor Paul Brant, said: “Staff in the care sector do a tremendous job keeping some of our most vulnerable residents safe.
“Despite the financial challenges facing the city council, we are determined to do what we can to make sure staff get a decent pay rise, and we are committed to an ambition of them being paid the Real Living Wage.
“In calculating the revised rate we have looked closely at the amount paid by other local authorities in the region as well as taking into account the rising costs in the sector.”
