The amount paid to care home operators by Brighton and Hove council is almost certain to increase next month.
An extra two per cent on care home rates in Brighton and Hove will mean homes with nursing fees will increase from £821 to £833 a week.
The council believes the cost of social care has significantly increased due to the pandemic.
During the last two years, the Department for Health and Social Care has supported care homes with funding for infection control, testing and vaccination, and grants to help recruit and retain workers.
A report for the council says many more people are now choosing to have care in their own home rather than within a care home. Care home staff have been leaving the sector.
Increased heating costs are also a factor for care homes together with rising food prices and care home operators are seeking to pass these costs on.