Derbyshire County Council is to increase the fees it pays to private care homes and backdate the increased payments to 2011.
The county council’s Cabinet approved the increase at its meeting on Tuesday, September 9.
The cost of backdating the payments will be just under £8 million and will be met from the council’s reserves.
Derbyshire County Council Cabinet Member for Adult Social Care Councillor Clare Neill said: “A great deal of work, time and effort has gone in to looking at the costs of care and consulting with care homes across the county.
“The fee levels we have now agreed compare well with the fees paid by surrounding similar authorities and we would hope that care home providers will find this increase acceptable.”
Since 2011 the council has increased the rates it pays to the county’s private care homes for resident placements by two percent per year.
The Derbyshire Care Providers Association wrote to the council in 2011 on behalf of members who believed the increase should be higher.
The Association claimed the rate being paid by the council for care home residents did not take into account the actual costs of care and did not allow for a reasonable amount of profit to be made.