Birmingham City Council has announced a Â£7.5 million settlement with private sector care homes in the city. Fees paid to private care home owners to look after local authority residents will now rise by more than inflation, according to the council. Residential homes will get Â£310 per week for a single room with an ensuite bathroom and Â£398 for a nursing placement. Payments will then rise by Â£1 million a year above inflation until 2007/08. Mike Gimson, a spokesman for Birmingham Care Consortium, representing private care home owners, said the new fees were a step in the right direction but did not go far enough. “Social services are saying the Government isnÂ¹t giving them enough money. Ministers are saying that the council isnÂ¹t spending it correctly. We are stuck in the middle,” Mr Gimson said.