How should I set the food and utility fees in Shared Lives arrangements?

It is for the Shared Lives carer, and the person they support, to establish these fees at the beginning of the match, and when the license agreement is renewed annually. Shared Lives schemes should facilitate the signing of the license agreement with the principles of fairness and reasonableness in mind.

The rates set out on the license agreement must be fair and reasonable to both parties, so that:

1. The Shared Lives carer is not subsidising the person’s ‘keep’ at home, and they are fairly reimbursed for food, fuel, and other household costs,
2. The supported person, who often has only their benefits to pay this contribution, and who might be less resourced to judge value for money, pays a fair rate. This is particularly important for energy bills, overcharging for which is against Ofgem regulations.

Schemes may want to use the DWP’s ‘ineligible costs’ sums – also called “deductions”, as a guide rate. This could entail adding up the weekly amounts listed by DWP for the number of meals provided by the Shared Lives carer per day, plus energy use.  Schemes can recommend this rate when providing the template license agreement, though it should be noted that this may not always accurately represent real average household costs. However schemes should still check the “deductions” annually, as they are liable to change.

Shared Lives schemes may wish to facilitate a more tailored agreement for each match:

• Special consideration could be given where a supported person is likely to incur higher costs through increased food and fuel use.
• The fees may also need to reflect where costs to heat the home significantly differ from the average.
• It may also be relevant to consider the costs of other shared amenities that the supported person is likely to use, including internet, phone, or television subscriptions.