Correspondence

DHSC letter: NHS-funded nursing care rates for 2019 to 2020 and 2020 to 2021

Published 30 July 2020

Applies to England

This communication covers 2 matters:

  • the backdating of the uplift to the 2019 to 2020 and 2020 to 2021 NHS-funded nursing care rate (FNC)
  • payment of FNC funding via local authorities to providers

This note seeks to offer advice on these 2 issues.

Backdating of the uplift to the FNC rate

As you will be aware, the government has recently announced that the FNC rate for both the 2019 to 2020 and 2020 to 2021 financial years has been uplifted and that uplift has been backdated to the beginning of the relevant financial year.

The rate of £165.56 was increased by 9% to £180.31 for the 2019 to 2020 financial year. The higher rate of FNC was increased by 9% from £227.77 to £248.06 per week. The higher rate is only relevant for people who were already on the higher rate in 2007 when the single band was introduced.

Additionally, the FNC standard weekly rate for 2020 to 2021 increased by 2% from £180.31 to £183.92 per week. The higher rate of NHS-funded nursing care also increased by 2% from £248.06 to £253.02 per week. The higher rate is only relevant for people who were already on the higher rate in 2007 when the single band was introduced.

We confirm that the uplift for the 2019 to 2020 rate is applicable from 1 April 2019, and that the 2020 to 2021 rate is applicable from 1 April 2020. NHS England has confirmed this with regional finance directors. A separate communication has been issued by NHS England setting out a preferred approach to calculating and back-paying these monies and is available to download on this page, for completeness.

FNC payments via local authorities

The NHS is responsible for the funding provided to nursing care homes to support the provision of nursing care by a registered nurse. This is paid as the FNC rate. This is separate from and additional to the responsibility of local authorities for funding the personal and social care elements of the overall care package. The social care rate is arranged between the provider and the local authority or self-funder.

If clinical commissioning groups (CCGs) have administrative arrangements in place to make FNC payments through their local authority, this does not alter the clear responsibility on CCGs to fund nursing care by a registered nurse for those eligible at the new FNC weekly rate, or the local authorities’ responsibility to pass on the new FNC rate to the provider in full.

We recognise that backdating these payments is an administrative burden coming at a time of extreme pressure for both CCGs and local authorities and so a lenient timetable is in place, which has been made clear by NHS England in its communication to regional finance directors.

If there are any queries about this letter, please contact Kelly Craig, NHS-Funded Nursing Care Lead in the Department of Health and Social Care at [email protected], who will be able to assist with questions about the rate.

If you have queries about paying the FNC rate, the backdated payment or other operational questions, please contact Nicky Yiasoumi, Commissioning Lead, [email protected].

Kelly Craig
NHS-Funded Nursing Care Lead
Department of Health and Social Care