Information on this page:
Commissioning and Market Position Statement
We want older people to be able to live healthy, independent lives, in their own homes, for as long as possible.
Some older people will eventually need 24-hour care in a residential care home. We are committed to providing the right support for individuals, in the right place, at the right time.
You can read more about how we aim to develop support for all adults in our area in our Commissioning for A Better Life for Adults in Dorset.
Our Market Position Statement provides more information about the care homes market in our area along with our assessment of the market’s capacity and ability to meet our commissioning needs.
The needs of older people who require 24-hour residential care are becoming increasingly complex, with most residents now having some form of dementia or cognitive impairment.
We also expect that in future the needs of people in care homes with nursing will also increase and become more medically complex.
Currently, most older people who require a care home service are 80 years and older. We expect more people with a learning disability and/or autistic spectrum disorder, mental health needs, or a history of substance misuse to need residential care in future due to their ageing-related care and support needs.
Many care homes are smaller than the economically ideal size, which can impact sustainability, although these homes may still effectively meet local needs.
Occupancy rates average around 82%, with Dorset Council commissioning about 24% of the available beds. The remaining beds are occupied by self-funders or individuals funded by other local authorities or the NHS.
Quality of care in the area is generally strong, with 83% of care homes rated “Good” or “Outstanding” by the Care Quality Commission (CQC), exceeding both national and comparator averages.
The market currently has sufficient capacity for individuals with lower levels of need, largely due to high occupancy by self-funders, some of whom enter care earlier than necessary.
We have identified a shortage of suitable and affordable care for individuals with higher or more complex needs, particularly those requiring advanced dementia care or positive behavioural support.
To address these challenges, we have developed a Care Home Services Category Model to better define and meet the needs of older people.
This model includes assumptions about the amount of care hours to be provided in each Service Category, and the costs of direct and nursing care hours, both informed by Fair Cost of Care analysis.
There is a specific need for more provision in Service Category 2 (high-level residential care) and occasionally Service Category 2a (advanced dementia and mental health needs), as well as all Service Categories with nursing.
We are actively encouraging care home service providers to join the Dorset Care, Support, Housing and Community Safety Framework (DCF2), which offers contracted-providers access to improved fee rates, a more consistent flow of referrals, and stronger working relationships with us. You can read more about it below in the section about working with Dorset Council.
We are committed to working collaboratively with care homes to develop services that meet the evolving needs of older people in the area.
Working with Dorset Council
We want to work closely with care homes that want to work with us to develop and deliver the type and level of service that older people need.
As a local authority, we also need to secure best value from the services we buy on the public’s behalf and comply with procurement regulations.
We’re introducing new arrangements to help us do this, including:
Contracts and procurement
In line with our Commissioning Strategy and to comply with Procurement Rules, we are consolidating the purchasing of care home services under the Dorset Care, Support, Housing and Community Safety Framework (DCF2).
In future, to receive placements from Dorset Council, care homes in our purchasing area will need to be contracted either via:
- Our existing Major Block contracts
- DCF2 (Lots 6 and 7)
- DCF1 (existing contracted providers only, ends 31st March 2026) or
- via the new Care Home Services (Non-Framework) Contract
Service categories
We’ve developed our ground-breaking Service Category Model which clearly defines the type and level of needs to be met in each Service Category, and what differentiates each Service Category.
These documents provide more detail about the type and level of needs to be met in care homes without nursing and care homes with nursing.
The bulk of our purchasing is in the following Service Categories:
- Residential – medium level needs.
- Residential – high level needs.
- Nursing.
- Nursing – advanced dementia and mental health needs.
Because most older people living in residential care homes will have some form of dementia, we expect that care homes that provide these services will have ‘older people’ and ‘dementia’ included within their CQC Statement of Purpose.
Occasionally, we also make placements in Service Categories 2a (Residential – advanced dementia and mental health needs, without nursing) and 5 (Nursing – advanced, complex).
The Service Category Model is the cornerstone of our new approach to commissioning care home services and will apply to all new care home placements.
Service specification
We’ve updated our Service Specification for care home services to better reflect the needs of older people in our area and the wider social and health care system, and to make our service requirements clear. We’re applying a version of this Specification to all new contracts for care home services.
Cost and evidence-based fee rates
We’ve increased our fee rates for placements in the Dorset Council area significantly in recent years and remain committed to achieving the Fair Price of Care (FPOC) when funding allows.
Our best fee rates and contractual terms are available to care homes that have been awarded a contract following their successful participation in a further competition (tender) under Lots 6 and 7 of the Dorset Community Care, Support, Housing and Community Safety Framework (DCF2).
Lot 6 is for short term care home services for older people, for example. respite, end of life care, and Lot 7 is for long term care home services for older people.
Systems and processes
We’re updating our systems to reflect the above and our revised care home placement search hierarchy.
We want to increase the proportion of care home placements that we make via a Framework Contract, eg. DCF2, DCF1, and reduce the proportion that are made via a Non-Framework individual placement (‘spot’) contract.
This section explains more about our new arrangements for making care home placements, and how your care home can benefit from the preferential fee rates and terms available under Lots 6 & 7 of (DCF2).
Lot 6 is for short term care home services for older people, for example respite, end of life care, and Lot 7 is for long term care home services for older people.
DCF2 – Block and Spot Contracts
We want care homes in and around the Dorset Council area to sign up to the Dorset Care, Support, Housing and Community Safety Framework (DCF2) so that they can participate in ‘further competitions’ to deliver care home services.
So far, we’ve run two further competitions to identify care home that can provide the services that we need.
DCF2 is a ‘Framework’ for purchasing many different services, including care home services for older people. In future, we intend to purchase most care home services for older people under DCF2.
Acceptance onto DCF2 alone does not mean that your care home will receive placements from Dorset Council or that you are entitled to receive the DCF2 preferential fee rates or fee uplifts when available.
It does mean that you will be able to participate in further competitions which may lead to your care home being awarded a contract to provide services, and you’ll receive updates about these via the ProContract system.
To receive care home placements from Dorset Council under DCF2 – and benefit from the preferential fee rates and contractual terms available - care homes must:
- have registered with ProContract (the system we use to manage tenders)
- have applied to and been accepted onto Lots 6 and 7 of the Framework and
- been awarded a contract to deliver services following their successful participation in a tender process (known as a ‘further competition’)
You can sign up to ProContract and apply to join DCF2 Lots 6 and 7 at any time. Details of any further competitions will be communicated via ProContract.
Please note that if your care home currently has a CQC ‘Requires Improvement’ rating you can still apply to join DCF2. You will need to provide - and we will need to approve - your plan for Service Improvement.
If you have any questions about the process of signing up to DCF2 Lots 6 and 7 you can:
- access the ProActis (ProContract) Help Desk and DCF2 Message Board, once you have registered on the system
- request more information from the Adults Commissioning Team
If you have any questions about the process of signing up to DCF2 Lots 6 and 7 you can access the ProActis (ProContract) Help Desk and DCF2 Message Board, once you have registered on the system.
Sign-up process for DCF2 Lots 6 and 7
Key points:
- Care homes can register with ProContract and apply to join DCF2 at any time.
- Ensure that you indicate that you wish to join Lots 6 and/or 7 and ‘deselect’ lots where you aren’t interested in providing services, eg. home care.
- New applications to join DCF2 are reviewed monthly - you will be notified of the outcome of your application.
- If you are successful, you will receive a letter confirming:
- you have been accepted onto DCF2
- which lots you have been accepted onto
- Acceptance onto DCF2:
- does not mean that your care home will receive placements from us or that you are entitled to receive the DCF2 preferential fee rates or fee uplifts when available
- does mean that you will be able to participate in further competitions (tenders) when these are released
- You will receive updates about further competitions (tenders) via the ProContract system when these are released and in relation to live competitions, e.g. clarifications.
- Make sure that you keep your organisation’s contact details up to date and check SPAM folders to ensure that you don’t miss any important communications.
Further competitions (tenders)
Once your care home has been accepted onto DCF2 (Lots 6 and/or 7) you can participate in any further competition released under these lots.
A tender process (or ‘further competition’) is a formal process in which organisations are invited to bid for contracts which need specific skills and services.
It involves providing information and answering questions about your care home’s ability to deliver the services that we need.
Participating in a tender process does take time and you should make time to ensure that your care home’s tender submission provides all the information requested.
Date of most recent / next further competitions
We released in June 2025 a second further competition under Lots 6 and 7 of DCF2 to identify care homes that can deliver services that we need.
We are awaiting the outcome of this process before deciding on plans for further competitions.
Our new Care Home Services (non-framework) Spot Contract replaces previous versions and will be used for all new spot, care home placements made outside of our Major Block and DCF2 Contracts.
Read more about the new (non-framework) spot contracts and view the contract documents.
When we need to identify a new care home placement, we will consider whether it:
- meets the person’s needs (categorised via the Service Category Model)
- will cost no more than we would usually pay
- is available
Dorset Council area first
In line with our Commissioning Strategy, we will first seek to identify a suitable placement in the Dorset Council area, unless the person’s needs or circumstances are such that we need to look further afield.
Purchasing hierarchy
We will also apply the following search hierarchy:
- Dorset Council’s major block contracts.
- DCF2 Lot 6 and 7 block contracts.
- DCF2 Lot 6 and 7 spot contracts.
- DCF1 spot contracts.
- Wider market.
Fee rates
Dorset Council’s fee rates for care home services are informed by the ‘Fair Price of Care’ (FPOC) in our area.
We commissioned independent consultants Valuing Care to carry out two Cost of Care Reviews and establish the true cost of providing residential care in our area.
Due to funding limitations, we are currently not able to fully implement the fair price of care (FPOC) for all care home services. However, we continue to work towards this aim and have increased our fee rates significantly in recent years.
Our best fee rates and contract terms are available to care homes that have been awarded a contract under Lots 6 and 7 of the Dorset Care, Support, Housing and Community Safety Framework (DCF2).
Our current fee rates for care home services for older people in the Dorset Council area are informed by the second Cost of Care Review which was conducted in 2023.
The results have been adjusted against relevant inflation indices and the National Living Wage increase, effective from April 2025.
The fee rates (net of funder nursing care where applicable) are categorised as follows:
| Service category | Working rate (weekly) | DCF2 Rate - only for providers awarded Lot 6/7 contract (weekly) |
|---|---|---|
| 1. Residential - medium level needs | £893 | £917 |
| 2. Residential - high level needs | £945 | £1085 |
| 3. Nursing | £969 | £1112 |
| 4. Nursing - advanced dementia and mental health needs | £984 | £1129 |
Care homes in our purchasing area that have been awarded a contract following their successful participation in a further competition (tender) let under Lots 6 and 7 of the second Dorset Care Framework (DCF2) receive higher fee rates for new placements.
You can read more above about working with Dorset Council.
Fee uplifts
In 2025 to 2026, fee uplifts for existing care home placements are only available to care homes in our purchasing area that have been awarded contracts under Lots 6 and 7 of DCF2.
Unless there is a change in care needs of the individual service user, and due to funding limitations, the Council is not able to increase fees for other existing placements.
In such cases, however, care homes must:
- complete a 24-hour needs recording form – to be evaluated by the social work team
- provide a detailed breakdown of their proposed fee rate - to be assessed against cost comparator information