ITEM
8
SOCIAL SERVICES NORTH WEST
MEETING
ON 20 JUNE 2003 AT KENDAL, CUMBRIA
REPORT OF THE PROFESSIONAL ADVISOR
KEY SERVICES /
FINANCIAL PRESSURES
1.
Matter for Consideration:
The Local Government Association
/ Association of Directors of Social Services / Society of County
Treasurers / Society of Municipal Treasurers Personal Social Services
Expenditure survey 2001–2004, January 2003.
2.
Introduction:
Members will recall that in
recent years we have reported to the committee on the LGA/ ADSS/
Treasurers Personal Social Services Expenditure Survey’s. The latest
for January 2003, is detailed below including a synopsis of the findings
relating to North West Authorities.
3. Information:
3.1.
This is the fourth survey of its kind and 125 out of 150 English
local authorities responded. The survey covered the position for 2001/
02, the current year 2002 /03 and the forecast position in 2003/04.
There have been significant changes in the funding arrangements for
local government in 2003/04. In the form of changes made to the total
spending level assumed by Government and the formula used to allocate
resources. This increases the difficulty of making year on year
comparisons. Nonetheless the survey confirms previous forecasts that
services continue to be under considerable financial pressure, and this
in turn is forecast to continue.
3.2. Spending
pressures by client group:
Children’s services
Expenditure is likely to
significantly exceed authorities budgets (with 69% overspending
nationally). This is not because authorities budgeted to spend less than
they were expected to. The greatest pressures were from:
Accommodation for looked after
children – due to fee increases and/or increased demand;
Agency foster care
- due to fee increases and or additional demand.
Looking to 2003/04 a number of
authorities highlighted further developments adding pressures on
resources:
- Responding
to the Victoria Climbie inquiry
- Introducing
the Children’s National Framework
- Establishing
a more preventative approach
- Developments
in Adoption
- Introduction
of Children’s Trusts.
There are also concerns that
there will not be enough resources for the Preventative Strategy and
Quality Protects. It is also unclear what additional funding will be
made available following the publication of the green paper on
Children’s Services this summer.
Older people
Government’s under funding of
children’s services resulted in authorities diverting money from other
services. The greatest pressures on older people’s services were:
- Care
placements for older people due to increased demand and /or fees
- Domiciliary
Care - due to increased demand or fees
- The
cost of reimbursement for delayed discharges that is likely to be
well above the new money (£100 million), which the Government has
proposed, be made available. Authorities will not be able to
increase capacity in existing services, or create new intermediate
care services, as the money is likely to be fully absorbed in
reimbursement for delayed discharge penalties. This is compounded by
the failure of the NHS Building Capacity funds to be deployed to
support required reductions in delayed discharges. An earlier survey
had showed that only 14 out of 70 reporting authorities had
received any funds from Health to support joint capacity
building initiatives.
- Fairer
charging is anticipated to cause loss of income and additional
costs by some authorities.
Other pressures include:
o Adult Services again
increased demand and fees contributed to overspend
o Other services/ pressures
- at least a third of authorities would need to subsidise Supporting
People.
- Some
authorities have extra cost pressures due to asylum seekers.
3.3.
Summary of North West statistics:
The
situation is substantially similar to that of the country as a
whole. Key statistical points include:
2001/02
There
was an overspend reported in the North West region of £13,313,000
(an average of £783,117.65 per authority), the biggest overspends
were reported for:
Children’s
services at £12,718,000 (average of £794,875.00 per L.A.))
and
services
for people with learning disabilities £6,885,000 (average of £430,312.50
per L.A.)
(older
people’s services were under spent by £6,909,000 regionally)
2002/03
The
biggest projected overspend is again for:
Children’s
services £12, 299,000 (average £768,687.00 per L.A.)
And
this time:
Older
People’s services £5,468,000 (average £ 341,750.00 per L.A.)
Factor
driving financial pressures:
(percentages
quoted are adjusted to valid percent i.e. % of responding authorities)
Demand increases drove financial pressures
predominantly in the case of
Delayed
discharges
(85.7%)
and
Secure
accommodation
(66.7%)
and
was the biggest factor in:
Care
placements for older people
(46.2%)
and
Domiciliary
care
(46.2%)
Cost
increases drove financial pressures predominantly in
Pay
settlements
(90%)
Fee
increases
(76.9%)
Mental
health services
(37.5%)
(with cost and demand in another 37.5%)
Combined
demand and cost increases drove financial pressures in
the case of:
Agency
Foster care
(64.3%)
and
LAC
accommodation
(62.5%)
And
combined were the biggest factor driving financial pressures in
services for:
People
with physical disabilities
(44.4%)
Cost increases
linked to losses of income through Fairer Charges
affected 71.4% of NW authorities.
Cost increases
also added pressure in 50% of responding authorities re Preserved
Rights (the other 50% experienced demand increases).
Only three
responding North West authorities intend to change their existing
eligibility criteria
(The full
tables and descriptive statistics for North West authorities are
available on request from the SSNW office - click
here to send an email requesting the RTF file)
4. Recommendation:
Members
are asked to note the above report and consider whether they wish to
take any further action on this matter.
APPENDIX
Please
note:
(missing)
refers to no information provided for the question by an authority.
17
local authorities responded to the survey.
Percentage
quoted is adjusted to valid percent i.e. of responding authorities.
2001/02
Overspend
regionally a total of £13, 313,000 -
mean £783,117.65
Learning
disability over spend ££6,885,000
-
‘’
£430312.50
Physical
disability ‘’
‘’ £1,644,000 -
‘’
£102,750.00
Mental
Health £1,163,000
- mean
£72,687.50
Children’s
services ‘’
‘’ £12,718,000 -
‘’
£794,875.00
Older
people’s under spend
-£6,909,000 - mean
-£431,812.50
Nine responding member
authorities are carrying forward the over spend into 2002/03 (and nine
are treating the overspend in some other way).
Projected overspends 2002/03
Initial SSD
net budget Regional total: £1,221,770,000
(mean £71,868,823.53)
Increase
compared to 2001/02
£ 34,527,000 (mean £ 2,031,000.00)
Predicted
overspend 2002/03
£ 18,695,000 (mean £1,099,705.88)
Older
People overspend
£ 5,468,000 (mean £ 341,750.00)
Physical Disability
£ 1,135,000
(mean £ 70,
937.50)
Children’s Services
£ 12,299,000
(mean £768,687.00)
under
spend
Learning
Disability
£ 598,000 (mean -£37,375.00)
Mental
Health
- £ 203,000 (mean -£12,687.50)
2002/03
Cost Pressures
LAC
accommodation (1 missing)
cost
and demand increases 62.5%
demand
only
31.3%
cost
only 6.3%
Agency
foster care (3 missing)
cost
and demand
64.3%
Demand
only
21.4%
Cost
only
14.3%
Secure
accommodation (13 missing)
cost and demand increases
33.3%
demand increases
66.7%
Care
placements for older people (4 missing)
Cost
and demand increases
38.5%
Demand
increases
46.2%
Cost
increases
15.4%
People
with learning disabilities (6 missing)
Cost
and demand increases
45.5%
Demand
increases
27.3%
Cost
increases
27.3%
People
with physical disabilties (8 missing)
Cost and demand
44.4%
Demand
increases
33.3%
Cost
increases
22.2%
People
with mental health problems (9 missing)
Cost and demand increases
37.5%
Demand increases
25%
Cost increases
37.5%
Fee
increases (4 missing)
cost
and demand increases
15.4%
demand
increases
7.7%
cost
increases
76.9%
Domiciliary
care (4 missing)
Cost
and demand
30.8%
Demand
increases
46.2%
Cost
increases only
23.1%
Delayed
discharges (10 missing)
Unit
demand increases
85.7%
Cost
and demand increases
14.3%%
2002/03
cost pressure: Pay settlement (7 missing)
unit
cost increases
90%
cost
and demand increases
10%
Change or propose to change
Eligibility Criteria in 02/03 due to budget pressures? (1
missing)
Yes
3
or 18.8%
No 13
or 81.3%
