Quarterly Meeting of
Social Services North West

15 March 2002 at Salford

SOCIAL SERVICES NORTH WEST

MEETING ON FRIDAY 15 MARCH 2002 AT SALFORD

REPORT OF THE CO-ORDINATOR

KEY SERVICE / FINANCIAL PRESSURES                                                            

1.         Matter for consideration.

To report on the financial position of social services authorities in the North West based on the results of the recent national LGA/ADSS/Treasurers Societies Budget Pressures Survey in January 2002, and to report on the latest developments regarding the SSNW delegation to Westminster.

2.            Introduction.

2.1.      At the previous meeting of the Social Services North West Committee, members expressed great concern about the financial pressures faced by social services authorities as a result of inadequate levels of funding by Government. There was thus enthusiastic endorsement of the proposal that a high level meeting with relevant Ministers and MPs from the Region be arranged at the earliest possible moment. This has now been organised at Westminster for 12 March 2002 and represents an historic event for Social Services North West, this being the first time a delegation has gone to the House of Commons to lobby Members of Parliament.

2.2.      Officers of SSNW were also requested to carry out further work in preparation for this meeting by collating local information, which has been done based on the LGA/ ADSS and Treasurers Societies recent survey of budget pressures in January 2002.  The results are summarised below.

2.3.      As agreed at the previous meeting, a publicity strategy has also been developed with the valuable assistance of Salford’s Press and Media Unit, resulting in a press release in January which encouraged active media interest. A further round of press publicity is envisaged for the period surrounding the visit to Westminster.  

3.            Information.

3.1The hopes of social services authorities were severely disappointed by the Local Government Financial Settlement for 2002/03, announced by the Government in December 2001.  Despite strong representations from the LGA and individual  councils, no new resources  were provided for social care services.  From the results of the present and previous surveys, Personal Social Services have been shown to be under considerable pressure as they undertake a massive programme of change, aimed at providing appropriate cost effective services which meet the real needs of clients and the Government’s modernising agenda.  The resulting pressure manifests itself in the form of inadequate resources both financial and human. There have been various causes of the resources shortfall, including the demographic growth of members of vulnerable groups, better identification of need, the pressure to meet higher expectations from clients, market pressures and the development of new preventative services, whilst maintaining existing services.  Some additional funding has been made available but, as stated above, much of this is either short term or has been ring-fenced for new developments, making longer term planning very difficult.  A particular pattern is that responsibilities being transferred from central government tend to be under-funded (for example the transfer of responsibilities for residents with Preserved Rights to local authorities), whilst when responsibilities are transferred from local government, an excessive amount of funding is withdrawn (eg the transfer from local authorities of inspection to the National Care Standards Commission).  Building capacity, avoidance of delayed discharges from hospitals and learning disability services were all cited as significant pressure points by many respondents from SSNW member authorities.

3.2.            Press Release

As a result SSNW protested strongly, in a press release sent out on 23 January 2002, saying that a lack of funds would imperil the quantity and quality of care for vulnerable people. In particular anger was expressed about:

·        changes to the allocation of ‘ring fenced’ grant money  which will collectively create multi-milllion pound budget shortfalls;

·        increased government restrictions on how money is spent  - meaning that departments cannot target resources at urgent local needs;

·        the responsibility placed on social services to pay increased nursing and residential home fees, which has not been matched by sufficient funds;

·        Government controls which limit how much social services can charge for services, cutting part of the income that departments depend on to run their vital services;

·        excess withdrawal of funds from councils on the transfer of their registration and inspection functions to a new national body;

Members will be pleased to note that the local media responded positively.  Substantial articles appeared in the Manchester Evening News, the Oldham Chronicle (with editorial) and the Warrington Guardian.  Interviews were also given to three local radio stations.  Several North West MPs have responded sympathetically, and with their assistance, a delegation of Members, Directors and officers from SSNW will be meeting with the Regions MP’s at Westminster on Tuesday 12 March, with a view to gaining further support and understanding and positively influencing future funding decisions.

The Survey

3.3       A further national survey was carried out by the LGA /ADSS /Treasurers Societies in January 2002 seeking answers to a number of key questions.  Nationally, considerable  analysis and constructive argument  has been put into the local government’s Spending Review 2002 with the aim of  a fundamental review of  social services baseline funding needs for 2003/04 onwards.  Eighteen of the 19 SSNW member authorities responded in time for this report – better than the 90% response rate nationally. The key points are summarised below: the findings reinforce the message contained in the SSNW Press Release.

3.4            Thirteen responding authorities reported spending in excess of the 2001/02 budgets to a total of £ 9.609 million.   Twelve authorities reported an underlying over spend, once short term measures have been taken into account, of at least £14.553 million.  Eleven authorities report a total over spend on children’s services of £8.276 million, ten authorities a total over spend of £4.061 million on older people’s services, and six an over spend totalling more than £1.449 million on Learning Disability services.  This confirms the result of the earlier survey, that local authorities regionally and nationally have been unable to contain pressures on their social care budgets in the past two financial years.  Nationally 87% are predicting an overspend, as are most in the North West.  Local authorities have already increased  their social services budgets by 1.6% more than the SSA increase, resulting in increased council taxes.  Most of the projected spending above budgets is on children’s services (nationally 69% with 12 % on older people and 19% on learning disabilities services). There is an acute shortage of qualified social workers – more than one in six of children’s social work posts nationally are vacant.

3.5       Of those projecting an overspend in the current year, fifteen SSNW authorities said it will not be funded from the budget for 2002/03 and the rest said it would be wholly funded from this source. Seven are currently carrying out, or will carry out soon, reviews of their eligibility criteria, implying that tougher tests will be applied in deciding whether people can receive services.

3.6            Reference was made earlier to the fact that responsibilities being transferred from central government tend to be under-funded, whilst when responsibilities are transferred from local government, an excessive amount of funding is withdrawn. Eight respondents predict a shortfall in relation to the funding of the Preserved Rights transfer (funding of higher rate income support for pre-1993 care home residents), totalling £2,090 million.  A shortfall totalling £1.678 million was indicated by eight authorities in relation to the transfer of Residential Care Allowances.  Fourteen authorities report that the money deducted from their SSA to fund the National Care Standards Commission exceeds the running costs they would have incurred on their Registration and Inspection Units in 2002/03.  The total discrepancy in the Government’s favour across these 14 authorities is £3.368 million for this issue alone.  No less than fifteen anticipate knock on implications in 2003/04 of the grant in 2002/03 for the Building Care Capacity grant (to a total of £16.506 million)

3.7            Regarding children’s services developments nationally, the numbers of children being looked after has risen remorselessly in nearly half of reporting authorities: this along with the increased complexity of need (especially of disabled children) has added inexorably to costs. Regionally the picture reflects the national one, the biggest cost derives from children who stay in care (including secure provision), causing overspends in thirteen responding member authorities. These children are tending to stay in care longer due to the complexity of their problems.  Foster care, whether specialist or not, is causing overspends in nine member authorities and in both foster care and residential provision, market forces are forcing up the costs. Government initiatives such as Quality Protects, Sure Start and the Children’s Fund have helped identify new unmet needs, which in turn creates extra demands and pressures to meet these.   Rob Hutchinson, ADSS children’s services spokesman said that “ New initiatives like Sure Start...will suffer too if other parts of the system that provide services to children are under funded.”

3.8       In the case of adults and older people, positive service developments relating to promoting independence, the development of choice, preventative and rehabilitative approaches, along with the response to the social inclusion agenda and partnership working, have gone hand in hand with severe budgetary pressures and great demands.  Resources are often inadequate and funding unpredictable.  Particular pressure is being experienced in relation to adults with learning disabilities, cited as a major factor by eight respondents.  For all adults requiring care, the key issue is one of securing an appropriate level of care provision. Increased charges by providers also puts a pressure on funds and many changes have occurred in the funding arrangements for adults including free nursing care, preserved rights, residential allowances, ‘Fairer Charging’ and ’Supporting People’.  Seventeen member authorities referred to such cost pressures.  Most authorities (68% nationally) have had to restrict their eligibility criteria for services to contain demand, as have a large minority of member authorities since 2000, with the result that often only the people in most acute need are receiving services. A particular feature of the settlement for social services in 2002/03 is that specific grants have more than doubled, thus further restricting the flexibility of authorities to meet increased demands.

3.9       It is the view of the LGA and ADSS as well as SSNW that it is vital that the government gives very serious attention to the social service financial position in its Comprehensive Spending Review for the next three years, particularly given the serious knock on effects for health service performance.  Prime Minister Tony Blair and Health Secretary Alan Milburn have both hinted recently  that the NHS is set for another big cash boost in April’s budget, just two days after LGA leaders from all political parties, and the ADSS, warned that social care services are in “serious jeopardy unless substantial, immediate and long term financial investment is made”.  The LGA have expressed their resolve to continue lobbying the government for more cash to support social services, following their disappointment over the final local government finance settlement for 2002-03.  In a briefing issued to MPs, they stated that they viewed ‘with great concern the failure to provide extra resources for Personal Social services, especially after the mounting evidence from local authorities which suggests that there are serious difficulties in delivering social care services’.  The greatest pressure is in residential and foster care for children.  It is also clear that the pressures will be carried over into 2002/03 as councils seek to pay for this year’s deficits from funds raised by the council tax levied in April.  The LGA /ADSS and Treasurers Societies are keen to work with government to ensure improved outcomes for vulnerable people.  Echoing the concerns of SSNW, they consider that the following is needed:

·        Immediate action in 2002/03 in relation to the funding deficit in children’s services, especially recognition of the true cost of placements for children looked after and investment in the development of foster care;

·        urgent review of all the funding assumptions about Preserved Rights;

·        urgent review of all the funding assumptions about the National Care Standards Commission;

·        very serious consideration in the Spending Review 2002 of all the submissions from local government and other related interests about the levels of under funding in all areas of social services.

3.10            Previous strong representations about the difficulties councils were facing have already resulted in the welcome  £300 million ‘cash for change’ initiative to tackle delayed discharges from hospital during 2001 to 2003 ( announced in October 2001).  Sir Jeremy Beecham, Chair of the LGA, said “this report clearly shows that the Government needs to complement the investment of the NHS with the investment into social care, not least to ensure that the investment into the health service is meaningful.”  ADSS President Michael Leadbetter said: “Local Authorities are fighting the battle on behalf of vulnerable people with one arm tied behind their backs”.  The LGA and ADSS are forming a national coalition of  partner organisations to meet and lobby Ministers, to ensure that money is found for the next financial year.

4.            Conclusion:

The recent survey has confirmed that there is clearly a case to be answered concerning underfunding: it is vital that social services are given significant attention in the forthcoming Comprehensive Spending Review, to safeguard the interests of all the vulnerable people for whom we have responsibility.

5.            Recommendation      

Members are asked to note the above report and action already taken, and to consider what further action they may wish to take to ensure improved financial provision for social services in the future.