PAPER G

Committee : SOCIAL SERVICE, HOUSING AND BENEFITS SELECT COMMITTEE

Date : 14 JANUARY 2003

Title : BUDGET DEVELOPMENT PRIORITIES 2003/2004

REPORT OF THE ACTING STRATEGIC DIRECTOR OF SOCIAL SERVICES AND HOUSING

1. SUMMARY/PURPOSE

To inform Members of the proposed budget development priorities which are subject to consideration as part of the 2003/2004 budget settlement.

2. BACKGROUND

On 5 December 2002 the Government’s proposals on the Local Government Settlement for 2003/2004 were announced. The government has changed the basis of the grant distribution formula and the Island has lost the Area Cost Adjustment which previously compensated authorities in the South East for higher costs in the region. The full impact of these changes will be the subject of a report to the Executive Committee on 15 January 2003.

There are many heavy service pressures facing Social Services in the 2003/2004 financial year. Particularly in the areas of elderly residential and nursing care and community support, with the additional emphasis on facilitating prompt hospital discharge. Further pressures include demographic growth, legislative changes, recruitment of child care social work staff and enhancing the quality of support to foster carers.

3. IDENTIFIED GROWTH PRIORITIES

· Children’s Services Recruitment & Retention

This has been the focus of a Member/Officer Task Group over the past year. Select Committee has previously endorsed a recommendation for a recruitment and retention market forces allowance to be paid as a means of reversing the difficulties in recruiting and retaining staff in this area. This measure would have a whole year effect cost of 94K.

· Growth in Older People’s social care requirements (Demographic)

Provision of an extra budget allocation of 108K is deemed to be appropriate in addressing the increasing elderly population on the Island and to ensure that social care provision matches this need.

· Learning Disability Elderly Carers

In recognizing the increasing number of older parents caring for children with a Learning Disability, provision of 108K is proposed as a budget development.

· Mental Health – Increase in residential care

Assessments of need are identifying an increase in the potential for residential care for some people with a diagnosed mental illness. This is reflected by a proposed provision of 27K in the year ahead.

· Compliance with the National Care Standards requirements

The new National Care Standards for Residential Care require greater levels of support and supervision within care homes and provision of 98K has been identified as a necessary requirement in the year ahead.

· Fairer Charging Policy

This is a further legislative requirement which will have a direct impact on the Council’s obligations in providing services in the coming financial year. Fairer Charging is the subject of a report to Select Committee on 14 January 2003. The identified impact for 2003/2004 amounts to 250K.

· Residential & Nursing Care/Home Care Provision

The most significant area in budgetary terms for 2003/2004 concerns the combined fee negotiations in respect of Residential and Nursing Care on the Island and the urgent need to support and develop the capacity of providers on the Island to support vulnerable people in the community. Select Committee has previously received presentations relating to the difficulties facing Nursing and Residential Care providers on the Island. These are attributable in large measure to the impact of the National Care Standards requirements, worktime regulations and indemnity. Delicate and complex negotiations with regard to fee levels are currently taking place and will be influenced in the final analysis by the budget settlement in respect of Social Services & Housing for the year ahead.

The availability of Home Care support is increasingly problematic due to the problems of recruitment which are related to the fee levels pertaining to the service. This applies equally to internal and external providers. Select Committee has established a Member/Officer task group to consider this matter further in the medium term.

· Foster Care Support

Foster Care recruitment and retention on the Island has been deteriorating over the past two years. Members have received a number of reports during that period and have already endorsed proposals to begin to enhance the quality of support to foster carers during the coming financial year. Members have also received representations from representatives of the Isle of Wight Foster Care Association on this matter. The proposed developments would require a potential budget development of 600K in the year ahead.

4. FINANCIAL IMPLICATIONS

The proposals summarized above represent a significant development for the 2003/2004 budget position and have been the subject of detailed discussion in preparation for the Executive Committee meeting 15 January 2003.

5. LEGAL IMPLICATIONS

Some of the budget pressures outlined above are directly attributable to new legislative and guidance requirements from government. Others impact on the level and quality of social care provision which the Council will be able to provide in the year ahead.

6. OPTIONS

Members of the Select Committee will be familiar with many of the priorities listed above. The identified priorities represent those judged to be most critical to service provision in the year ahead. Members will also have confirmed their support for some of these during the past year.

The government settlement for the Island for 2003/2004 contributes to a complex budget planning process. The Social Services & Housing identified growth priorities are subject to review in the light of the Council’s determination of the overall budget priorities. The Executive Committee will receive the report of the Portfolio Holder for Resources on 15 January. This refers to a budget development of 2.277M in total for Social Services & Housing. It is therefore unlikely that the priorities as outlined above can receive the full level of funding identified and difficult choices will have to be made in the face of competing and varied priorities.

In addition, Service Reductions of 232K will be required in balancing the budget proposals for 2003/2004. As in previous years, this is part of the budget setting process year on year.

7. RECOMMENDATION

Members are invited to consider further the priorities as outlined above as a means of informing the budget process.

8. BACKGROUND PAPERS & Presentations

Negotiations with Care Providers 6 March 2002

Presentation from IOW Foster Care Association 7 August 2002

Briefing on Foster Care Issues 4 September 2002

Recruitment & Retention of Child Care Social Work Staff 15 October 2002

Home Care Provision 15 October 2002

Fairer Charging for Home Care

& Other Non-Residential Social Services 6 November 2002

Foster Care Services & National Minimum Standards 6 November 2002

Presentation on a Continuing Care Community 4 December 2002

Contact Point : Jimmy Doyle, 520600

J DOYLE

Acting Strategic Director of Social Services and Housing