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TEXT OF LETTER FROM SOCIAL SERVICES NORTH WEST
ON KEY SERVICE / FINANCIAL PRESSURES
12 October 2001
The Rt Hon Alan Milburn MP,
Secretary of State,
Department of Health,
Richmond House,
Whitehall,
LONDON SW1A 2NS
Dear Secretary of State,
I am writing on behalf of Social Services North West to express our concern about the limitations on current funding of local authority social services in the North West.
Social Services North West (formerly known as NWASSA – the North West Association of Social Services Authorities) is the member-level body which represents the local authorities in the North West of England which have responsibility for the personal social services. 19 of the 22 eligible authorities are members. We work with our members and others to promote high quality services in the North West.
We exchanged correspondence with Mr Hutton about this at the beginning of this year. We acknowledge the extra resources put into this year’s settlement, but as we predicted, this is proving insufficient as the year progresses. This is evidenced by the results of the survey - as they apply to the North West - of the Local Government Association / Association of Directors of Social Services / Treasurers survey sent out this summer.
Key findings of the survey of North West authorities were:
- There is a real problem of structural under-funding with social services authorities finding it increasingly difficult to meet their statutory obligations. A substantial majority expect that they will not have enough money to meet projected demand from all those eligible for help. Most have therefore tightened or propose tightening eligibility rules to ‘choke off’ this source of financial pressure. The pressures of demand created by statutory responsibility, market capacity, work force availability and need are considerable.
- Across the region, expenditure was expected to be some £21 million (or 1.5 %) in excess of that budgeted for the financial year 2000/01.
- Fifteen (three quarters of the respondents) reported that one-off government ‘Winter Pressures’ money (Health Authority direct contributions) was significant in reducing delayed discharges etc. A clear message was that longer term, more certain funding was urgently needed
- The pressures on the budget due to the rising costs and demand for placements, especially for foster care and children with disabilities, were emphasised
- Asked whether there was a gap, 17 respondents said that there was a gap between the cost of meeting all expected demand which falls within existing eligibility criteria in 2001/02 and the budget available. This ranged from 0.63% to 7.35 % and averaged 2.36%. To address this, most respondents are attempting to cut expenditure in adult provision, for instance by means of reviewing domiciliary care and Best Value reviews, and limiting the size and expense of care packages.
- Rising costs and demands in the adult care sector were highlighted by half the respondents. Concern was also expressed about how free nursing care may impact on the SSA position. Extra funding would for instance facilitate more preventative work and extra intensive support for individuals discharged to their own homes.
- Learning disability budgetary pressures were highlighted by 35% of respondents, this included the cost of intensive home care and supported packages, increasingly complex cases, the transition from childhood to adulthood, ageing carers and the demands created by the recent White Paper.
- The increase in the Region’s budget (for the year 2001/02) is overall reported as of 3. 2% (compared with 2000/01). This appears to be not much more than the rate of inflation compared to the previous financial year. Eleven responding authorities (55%) said that in their view the budget position had worsened compared with last year (one being much worse).
- Of the main issues dominating forward planning for 2002/03, external placements generally loom large (fifteen specifically mention children, eleven elderly). Home / domiciliary care was also cited, along with general concern about the increasingly complex and costly care packages required.
- Twelve respondents (60%) estimated that overspend is likely in 2002/03. Another two respondents are considering reducing services or increasing waiting lists as over spend is not an option; others find it difficult to estimate at this stage.
In drawing your attention to these pressures, we do acknowledge two steps taken recently to ease the immediate pressures. The decision to postpone the introduction of free nursing care for LA-funded residents provides a welcome deferment of the uncertainty and instability which will undoubtedly result from the changeover.
We also welcome the commitment of additional resources in the next two years through the "Building Capacity and Partnership in Care" initiative. We accept the good practice measures set out in the Agreement around focusing on those who use services and their carers and around inclusive and effective commissioning: indeed many of these have already featured in the practice of local social services authorities in the North West. We also appreciate the additional £11 1/2 million of funding in the current year to help address the urgent issues in the hospital/community care system, particularly as far as older people are concerned.
We would however point out that these additional resources by no means fully remedy the financial shortfalls identified in the survey, and do nothing to address the crisis in children’s services.
It is sometimes asserted that resources are sufficient provided local authorities manage these effectively. We would point out that local authority social services are getting better and better, as extensive monitoring by the Social Services Inspectorate, the Audit Commission and others are revealing. This includes the more effective use of resources as well as ever greater sensitivity to the needs of service users. Our efforts in this direction will continue, through Best Value reviews and other means, but our commitment needs to be matched by Government recognition of the real financial pressures we are experiencing.
I am writing in similar terms to Mr Byers, and I am sending a copy of this letter to the 61 MPs whose constituencies lie within the area of our 19 member authorities.
Member authorities of Social Services North West would much appreciate your comments about the matters I have raised, and your reassurance that there will be sufficient money available to maintain, develop and improve services in partnership with the NHS and in accordance with the aims of modernisation.
If you would like more information about Social Services North West, please do not hesitate to contact me through our office address below.
I look forward to hearing from you.
Yours sincerely,
Councillor Cliff Morris
Chair, Social Services North West
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