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MEETING ON 16 MARCH 2001 AT HALTON
REPORT OF THE CO-ORDINATOR
1. Matter for Consideration:
Representations made on behalf of SSNW to Ministers about the financial pressures on social services in the North West, and links established with SIGOMA.
2. Introduction:
Members will recall that at the last meeting in December 2000, reports were submitted documenting the service and financial pressures faced by member authorities. The Chair wrote to the appropriate Ministers expressing members' concerns: copies of the letter and the Ministerial responses are attached.
Click here for the full text of the Chair's letter to Ministers
Click here for the full text of the reply from Beverley Hughes MP, DETR
Click here for the full text of reply from John Hutton MP, DH
3. Information:
3.1. A response to the Chair's letter has since been received from Beverley Hughes MP, Parliamentary Under-Secretary
of State at the DETR. The Minister assures members that the points made by SSNW have been carefully considered
as final decisions were taken. The difficulties member authorities face are also recognised and extra money has
been provided to help councils, with an extra £576 million for social services - including £100 million
to help respond to this year's winter pressures. She acknowledged the particular pressures facing councils meeting
the needs of children in care, and said that Quality Protects funding was being increased from £120 million
this year to £180million next year. She recognised that authorities will still face difficulties, but the
Government believes that a start has been made in providing resources to ensure better services and priority will
be given to social services. Improvements in the early announcements of specific grants will also be sought.
(As this report was being finalised, a reply was also received from John Hutton, Minister of State at the Department
of Health, which is also attached)
3.2. On the matter of financial pressures, members will no doubt be pleased to learn that useful links have been
made with SIGOMA -The Special Interest Group of Municipal Authorities (Outside London) following from the suggestion
of the Vice Chair of SSNW. SIGOMA has recently been active in responding to the 2001/02 Local Government Finance
Settlement, and officers of SSNW are now in regular contact with SIGOMA's Chief Policy and Development Officer,
Frances Foster who is based at Barnsley. Officers of SSNW made our recent reports on Key Services / Financial
Pressures available to SIGOMA so that the information could be used for briefing MPs for meetings with Ministers.
Ms Foster has kindly offered to make available any relevant information gathered on behalf of SIGOMA, and recently
sent a copy of their response to the Finance Settlement, which highlighted pressures on social services finance,
amongst other areas. A copy of this document will be made available on request.
3.3 These initiatives within the North West have recently been echoed at national level by representations in February
to health minister John Hutton from both the Local Government Association (LGA) and the Association of Directors
of Social Services (ADSS) over a projected £205m combined overspend in social services department budgets
in England this year. The financial crisis came to light after a survey found that 85% of the 146 social services
departments surveyed expect to go £2m in the red - equal to 2% per authority. Calling for ministers to recognise
the spending pressures faced by local authorities, Local Government Association chairman Jeremy Beecham said: "This
is obviously a serious financial problem for councils and cannot be sustained in the long term. The number of children
in care is rising and the cost of provision especially in residential settings is also increasing." This concern
was driven home by Rita Stringfellow, chairwoman of the LGA social affairs and health executive, in a letter to
councillors. "The assumption that significant resources over the next three years will be funded by local
authorities, reliant on the standing spending assessment (SSA) formula, was not widely understood," it stated.
3.4 Recent figures have also confirmed a significant nationwide rise in the number of abused, neglected or at-risk
children being looked after by councils in England. The number of children looked after because of potential or
actual abuse or neglect rose by 11% of the looked-after total in four years to March 2000. Nearly one-third (31%)
of looked-after children in 1999-2000 had been at risk or had actually been abused or neglected, compared with
one-fifth in 1995-96. The number of children being looked after by local authorities in England on 31 March 2000
was also up by 5% on the previous year and was 18% higher than the same date in 1994.
3.5 The recent emergence of these national initiatives demonstrate that our experience in the North West is not
unique or different from that elsewhere, but we began highlighting these trends to the LGA and Ministers several
months ago.
4. Recommendations:
4.1 Members are asked to note the above report.
4.2 Members are asked to indicate whether they wish any further work to be done on this issue at present, or whether
a watching brief should be maintained on emerging trends as the year progresses.
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