Care providers struggling to maintain services during the coronavirus crisis have reacted angrily to an offer by English council chiefs of a temporary increase of 10% in the fees they pay the care homes, to cover their additional costs.

Councils have been given an emergency £1.6bn by the government for extra spending prompted by the crisis. They say that while a “substantial part” of the fund was always destined for social care, they face other exceptional costs and cannot immediately commit to a fee increase beyond the end of this month.

In a joint letter to care provider groups, which has been seen by the Guardian, the Local Government Association (LGA) and the Association of Directors of Adult Social Services (Adass) say: “It is suggested that any temporary increase could be initially for one month with effect from 1 April 2020 with an expectation that it would be extended further if significant staffing issues persist.”

The letter has infuriated care sector leaders, who had expected a pledge of bigger and more sustained support to help them cope with the crisis.

Care workers move into Sheffield dementia home to shield residents Read more

Martin Green, chief executive of Care England, which represents larger care home chains, said: “Our own findings make it clear that a 10% increase will not be sufficient. There is a real danger that this is too little, too late, and there simply isn’t time to go cap in hand in weeks and months to come.”

The National Care Forum, which represents not-for-profit providers, described its reaction as one of “dismay and disbelief”.

Vic Rayner, the forum’s chief executive, said: “Local government runs the risk of pushing care providers into substantial failure and collapse by not stepping up to the mark at this time of national need.”

The letter from the LGA and Adass sets out a framework for councils to negotiate local terms with providers they contract with for state-supported residents of care homes and people receiving homecare. It acknowledges that costs have risen because of the need to buy personal protective equipment (PPE) for care workers, to cover for higher sickness absence and to increase staffing levels because of the greater level of dependence of people being cared for.

It says that an initial review of evidence suggests that costs are likely to rise by 10% this month, but that some services – for example, support for people with a learning disability – “may be differently affected and may need a differing local solution”.

The letter says: “There are many calls on the government grant of £1.6bn and whilst it was expected that a substantial part of it would be needed for adult social care, it would not be possible to sustain substantial temporary increases in funding to providers over a number of months without additional government resources.”

Green said PPE supply was at the forefront of all care providers’ minds. “It is disappointing that the paltry increases proffered by the LGA would not even cover the costs of PPE – if, indeed, providers were able to procure sufficient supplies.”

The Care Provider Alliance, an umbrella group of all 10 main national associations of providers, warned there was no guarantee that all councils would pay even the 10% increase. “We do not believe that there is a system in place to ensure that £1.6bn of public funds reaches frontline services.”

Ian Hudspeth, chair of the LGA’s community wellbeing board, said providers would need to work closely with councils to win further funding. “Nobody can say for certain how this situation will develop and what further resources will be needed.”