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SOCIAL SERVICES NORTH WEST
MEETING ON 15 JUNE 2001 AT TAMESIDE
REPORT OF THE CO-ORDINATOR
KEY SERVICE / FINANCIAL PRESSURES
1. Matter For Consideration
A report on further issues which need to be progressed, relating to the report on Key Service / Financial Pressures to the SSNW Committee in March 2001.
2. Introduction
Members will recall that financial issues have been identified as one of the major areas of work for the current SSNW year and Directors have been very keen to co-operate in dealing with this pressing matter. At the previous meeting a report was considered on representations made on behalf of SSNW to Ministers about financial pressures on social services, and the full responses received. It was requested that a further report be submitted to this meeting on the up-to-date finacial situation amongst North West Authorities. As a result officers of SSNW have trawled Directors of Member authorities for their comments and concerns, and the results are outlined below.
3. Information
3.1. Ten authorities responses in time for the writing of the report (one of which felt that it was not possible to comment until after the election). The following key issues were identified.
3.2. Older People:
- Six responding authorities specifically cited costs of residential and nursing home care for older people as a major concern. This has resulted in a number of consequences including the restriction of placement activity leading to cancellation of elective surgery and delayed discharges (cited by three respondents – one of whom specifically stated that without substantial funding from the Health Authority, the problem would have been worse).
- Working in partnership with health has helped, but their own pressures - for instance to vacate hospital beds - is having an effect on pressure on social services. Funding support from Health is often ‘one off’, which can create future commitment for councils whilst impacting adversely on planning. The ability to undertake preventative work is limited by the need to target those most in need.
- Pressure to increase payments for residential and nursing home care are seen as coming from inflationary pressures and the introduction of the minimum wage. There is also concern about the lack of detailed guidance to date on the issue of free nursing home care. One authority particularly referred to the prospective increase in Department of Social Security rates which could have an impact on the rates to be paid to providers for residential and nursing home placements. This in turn would affect commitments made in future. Increases in charges by SSD may be insufficient to maintain bed spaces required, according to another authority.
- The rising cost of domiciliary care was also an issue for two responding authorities, with inflationary and minimum wage impacts cited.
- Two authorities have a significant problem regarding waiting lists for aids and adaptations - especially in public sector housing - due to budgetary pressures, (for instance funding pressures on the Housing Revenue Account results in limited budgets resulting in increased waiting lists).
- Four respondents cite serious pressures on the community care programme , with concern about the levels of investment available and the need to ensure that sufficient resources are routed through the NHS and directed to social services to develop these services. This is impacting on services to both older people and people with learning disabilities. Pressures on services to people with learning disabilities were highlighted by one respondent, especially relating to school leavers and mental health service users.
3.3 Children’ Services:
Services for children and families are under substantial budgetary pressures in seven responding authorities; the cost of foster care - especially independent foster care placements – being a major factor, along with out of authority placements (including secure accommodation). The imbalance of demand and supply has significantly increased prices due to market forces. Pressures from the impact of child protection procedures have had a particular impact in one responding authority, resulting in high placement costs. Another authority continues to have a high level of overspend on services for children with learning disabilities. One authority also reports having only minimal extra resources to deal with Leaving Care. Charges for Police checks also add an extra if minor financial burden.
A report in March 2001 for the Association of Directors of Social Services also showed that there is evidence of increasing demand due to a combination of increase in population, increase in the numbers of children in need, the impact of new policies/legislation, and the uncovering of unmet need through social inclusion initiatives. Increased activity and the rising costs of services were found to be having a substantial impact, and the general funding position was found to be inadequate.
3.4. Other issues mentioned by authorities include:
- the financial pressure of increased training requirements and recruitment and retention pressures and related to this a shortfall, in budget provision for the national pay award;
- more Special Grant income is required to be diverted into the maintenance of current activity as base budgets are insufficient to meet rising demand, affecting the ability to show ‘additionality’ from the use of Special Grants Funds;
- general pressure on all budgets due to the number of Government initiatives;
- an effective reduction in Modernisation Grants is placing a strain on one authority leading to a possible reduction in activity to bring expenditure in line with the budget.
- a reduction in S117 Mental Health Charges has resulted in one authority needing to reduce their level of activity .
- The introduction of Care Standards is hampered by lack of funds
4. Conclusion:
4.1 Considerable financial pressures clearly affect both services to older people and children. The continued high and rising costs of all residential care is a real pressure and this pressure is also being felt increasingly in the domiciliary care sector.
4.2 The need for sufficient capacity in the system to manage change and meet expectations and provide information to the Government was also a general point made by some respondents. These additional factors put considerable pressure on the infrastructure of social services departments; there is as a consequence a lack of contingency provision in some department budgets.
4.3 A recent joint survey by the ADSS and the Local Government Association, with the help of the Society of County Treasurers, confirmed the problem of overheating budgets and consequent reduction in services. The major impact was felt in children’s services, followed by those for older people and then services for people with learning disabilities. The report stated that:
"… against a background of under funding of social services (in terms of need, demand and public expectations, as well as rising costs) and also the drive by local and central government for improvement in social services, there is a major concern across local authorities about the financial position in the current year as well as the prospects for 2001/02" .
This summary is fully reflected in the above responses from North West authorities.
5. Recommendation
Members are asked to note the above report, and consider what further action they wish to be taken at this stage.
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