Hampshire County Council
	Policy Review Committee - Social Care	Item
	25 January 2002
	Revenue Budget 2002/03
	Executive Member - Social Care		Item
	28 January 2002
	Report of the County Treasurer and the Director of Social Services

Contact: Gordon Shinn, Head of Finance ext 7526

1. Summary

1.1 This report sets out the proposed Social Services revenue budget for 2002/03 and reports on the revised budget for 2001/02. The Social Care Executive member is being recommended to approve for submission to the Cabinet:

· to approve the base budget (as set out in Appendix 1 and Annexes 1 to 4)

· to approve the efficiency improvements (as set out in Appendix 2)

· to approve the proposals to increase charges (as set out in Appendix 3)

· to approve the proposals for new growth and redeployment within budget guidelines (as set out in Appendix 4)

· to approve the budget for 2002/03 and the revised budget for 2001/02 (as set out in Appendix 5)

· to approve the report on the extent to which specific grants are used to assist or improve service levels, the impact of changes in function, and the extent to which other pressures and demands can be absorbed within the adjusted 5.3% passported cash increase.

· to request the cabinet to make contingency provision for additional demands and inflationary pressures that cannot be met within the budget proposals.

1.2 Prior to the Executive member considering the budget, this report is being presented to the Social Care Policy Review Committee to provide the Committee with the opportunity to comment to the Executive member on the proposals.

1.3 The passported Standard Spending Assessment (SSA) increase of £8.1m (5.3 %) is necessary simply to meet the corporately assumed level of inflation pressures, together with continuation of services where Government grant has been ended.

1.4 There is no recognition in the provisional revenue support grant settlement for the continued under-funding of Social Services. The underfunding nationally has developed around the Government's Spending Review 2000 which forms the basis of its grant for 2002/03. These additional pressures cannot be met within the cash increase in the SSA for Social Services because of pay and price pressures and the consequences of the external function changes imposed by the Government.

1.5 The funding position has been made even more difficult by the new guidance issued on charging policies for Home Care and other non-residential services, without any apparent recognition of the resource implications. Implementation of this guidance is expected to result in a loss of income of around £1m in 2002/03 and £2m in a full year. It is assumed that charges will be increased to compensate for this loss.

1.6 The pressure on resources is not a surprise. Between 1993 and 2004, central Government has, or will have, transferred several functions to local government: community care; preserved rights; residential allowances; and supported housing costs. Each of these has been a transfer from cyclical (non-cash-limited) Government spending to cash-limited local government budgets. In transferring these functions, the Government has taken much of the risk out of its own budgeting and given local authorities the impossible task of funding demand-led costs from cash-limited budgets.

1.7 Following the Cabinet meeting on 17 December 2001 representations are being made jointly to the Government by all three party leaders to recognise this continued underfunding and to request additional resource in the final grant settlement.

1.8 There is a real growth of £2.5m within the £24m additional grants provided by the Government in 2002/03. However, this is growth in order to further the Government's priorities. That said, there will be some areas in which what would otherwise have been pressures will be offset by Government grant.

1.9 There remain a number of budget pressures which are in practice unavoidable. These fall into three main categories:

· Further inflationary pressures due to market factors. These are care purchases for which Council has some discretion, but cannot realistically avoid increases beyond the corporately assumed inflation level of 2.5% if sufficient care is to be purchased in the market

· Known increases in demand, especially where young people with disabilities reach 18; they then require funding in adult placements, whilst the next generation of children require funding in children's services

· Costs of implementing new legislative requirements.

1.10 The only funding available to meet these pressures are in efficiency improvements which can be made. Savings of £1.5m mainly from the application of transitional housing benefit are identified in paragraph 6.2 and this is sufficient to allow these pressures other than additional inflationary pressures, to be met at the most optimistic estimates of levels of spend needed. In addition, it is difficult to predict in advance the exact impact of the transfer to the Council responsibility for preserved rights cases, and this could well add to the pressure.

1.11 Given the pressures apparent in these areas and the difficulties at this stage of predicting in full the prices which will have to be paid and the demand factors it may be appropriate for Cabinet to set up a central contingency which could assist in these areas if they do indeed lead to budget pressures beyond the level provided by passporting the SSA increase.

1.12 In addition to the above, there are many areas in which further developments are needed if both Government's and local policies are to be delivered and services improved. Given the pressures on the budget simply to deliver what is inescapable, it will not be possible to progress these.

2. Introduction

2.1 At its meeting on 17 December the Cabinet set provisional budget guidelines which would result in an overall budget increase of 5.5% and an estimated council tax rise of 6.1%. The provisional guidelines are at the level of the base budget together with passporting of additional sums for Education and Social Services.

2.2 Other identified central pressures were not allowed for in the provisional guidelines because of a number of uncertainties affecting the budget. The Cabinet will take account of these pressures at their meeting on 11 February 2002 when considering the final budget to be recommended to the County Council. Taking these considerations into account a budget increase of between 6.2% and 6.6% might be the likely outcome. This would result in a council tax rise of between 8% and 9%.

2.3 The Cabinet resolved that when making budget recommendations to the County Council they will include:

· agreement of the base budget

· confirming the passporting of SSA percentage increases to Education and Social Services

· considering executive members' responses to the budget guidelines

· considering the results of budget consultation with partners (headteachers, governors, parent teachers' organisations, the voluntary sector, trades unions); business interests; residents' associations and council tax payers

· considering the outcome from any further public opinion polling and any comments received from other organisations such as Police, Fire and health authorities

· determining spending and council tax decisions within the flexibility available within the provisional projections and subject to the final revenue support grant settlement and the update of budget and council tax figures.

2.4 In addition the Social Care executive member was asked to report back to Cabinet on the extent to which specific grants are used to assist or improve service levels, the impact of changes in function, and the extent to which other pressures and demands can be absorbed within the adjusted 5.3% passported cash increase.

2.5 For this service, the provisional budget guideline is £205.0m.

2.6 This report sets out the Social Care executive member's responses to the guidelines. The report:

· reviews the base budget which totals £202.1m at outturn prices.

· identifies efficiency improvements which include £0.3m of pressures and costs absorbed in the budget and £1.5m cash backed savings

· reviews the charges made by this service

· proposes growth of £2.9m to be met from increases allowed in the budget guidelines. However, this is required to meet ongoing expenditure commitments to offset the reduction in Promoting Independence grant (£2.7m) and inflation.

· Identifies changes in specific grants and their use (Appendix 6)

3. Revised budget

3.1 A projected pressure on the revenue budget of £0.9m, based on figures as at 30 September 2001, was reported to the Executive Member for Social Care on 23 November 2001. However, it was considered that this could be managed down to within the cash limit by the end of the year. This remains the position.


3.2 At the meeting on 23 November 2001 the Executive Member approved allocations from centrally held budgets to client group budgets. Some budgets had been held centrally since the start of the year, pending determination of highest pressure areas and appropriate allocations of grant funding.


3.3 The calculation of the cash limit, reflecting these changes, is set out in Appendix 7. A detailed comparison of the revised budget against the cash limit is set out in Annex 1 to Appendix 7.

4. Base budget 2002/03

4.1 A base budget has been prepared which contains the current financial policies of the Council, in order to provide a starting point from which decisions can be made. The base budget for this service is £202.1m, including an allocation of £4.3m for future inflation.

4.2 Appendix 1 shows the make up of the base budget.

4.3 Overall, the base budget includes a net increase in expenditure at constant prices of £21.5m. The main variations are set out in the following paragraphs:

Variations in Government Grant (£24.0m).

4.4 Variations in specific grants are detailed in Appendix 6. Within this figure the most significant items are:

· Preserved Rights Transfer (£13.5m). From April 2002 the County Council takes on responsibility for funding clients who entered independent sector care provision prior to April 1993 and have been supported by the Department for Works and Pensions (DWP) and its predecessors. A significant amount of work is required in order to determine whether this funding will be sufficient to meet these costs. It is estimated that there will be approximately 1100 clients and these will need to be care managed and financially assessed and appropriate contractual arrangements made, for which a number of new staff will be needed. Within the £13.5m grant there is believed to be £1.9m for `additional costs', including recognition that market factors will mean that the County Council will have to pay higher than the existing rates paid by the DWP.

· Building Care Capacity (£5.16m). This grant was introduced during 2001/02 and is aimed primarily at joint working with Health to reduce the numbers of delayed hospital discharges. As one of 55 `hotspots' because of the higher costs and difficulties on the care markets in the south -east, Hampshire County Council received a higher than average proportion of the £100m available nationally in 2001/02 and this formula has been applied again for 2002/03.
A plan has been agreed with the three health authorities, which identifies potential full year commitments of more than £5m. Some re-evaluation of this may be required in the light of the actual grant awarded and possibly other high priority demands that may be able to be funded by this grant This grant, therefore, helps to relieve pressure in the NHS, not in the Council's own Social Services spending.

4.5 Other changes in the base budget include the reduction in respect of the transfer of the registration and inspection service to the National Care Standards Commission in April 2002 (£458,000); and the transfer from SSA to specific grant of £1,569,000 in relation to Children Leaving Care services. The Children (Leaving Care) Act became effective from 1 October 2001 and a similar transfer from SSA to specific grant was made in 2001/02 to reflect the first half year costs.

4 Comments from the Director of Social Services

4.1 The resolution of the Cabinet to passport the SSA increase to Social Services is to be welcomed. Without this, there would be little hope of containing spending within budget limits, given the increasing pressures faced by the Department.

4.2 In addition to the increased SSA, the Department of Health has announced figures for special and specific grants - figures for existing grants for the forward year as well as figures for new grants. These show a very considerable increase over the current year. By far the largest new grant is supposed to cover the cost of the transfer of residents in independent sector homes supported by the Department for Work and Pensions (so called `preserved rights' cases) to the County Council. However, it is by no means clear that the grant will cover the full cost and it is expected that this transfer will fuel demands for above-inflation increases in independent sector homes' fees. As usual, the terms and conditions attaching to the grants will not be known in full until the end of the current financial year or the beginning of the forward year, thus making planning difficult. It is, however, clear that the additional funding that the County Council receives from these grants will have to be used to meet Government, rather than County Council, priorities.

4.3 Budget growth, from central government funding, to meet increasing public expectations is, therefore, an illusion. Equally worrying is the growing proportion of the Social Services' budget made up of Government special and specific grants which are ring-fenced and tied to the production of plans and the achievement of specified outcomes. While, no doubt, the County Council would want to be associated with the Government's objectives, increasing ring-fencing of some parts of the budget reduces the degree of flexibility available to the remainder. This poses a significant threat to those services which are not covered by ring-fenced grants but are subject to demand and cost pressures.

4.4 The main pressures to be coped with in the coming year are :

· Support for the health service, reducing, wherever possible, avoidable hospital admissions and expediting early discharge and meeting the requirements of the Government's `Building Care Capacity' programme;

· Rapidly escalating prices in care and nursing homes as a result of staff (particularly nurse) shortages and impending new care standards imposed by the Government causing growing numbers of homes to close;

· Workforce issues - meeting the Government's objectives and standards for training and competence of the social care workforce while, at the same time, improving our position in the recruitment market and taking steps to retain valued staff. The health and safety agenda will continue to be an important component. A new element is the additional costs imposed by the creation of the new Criminal Records Bureau which the Department will have to use in screening potential employees and foster carers;

· Demand pressures which are growing, both in quantitative and qualitative terms: the growing population of older people and the growing incidence of dementia; growing numbers of children and young adults in the population with severe physical and learning disabilities and mental health problems.

· Income pressures - not least from Government initiatives to extend access to free domiciliary services and nursing care.

4.5 Real growth in spending power is needed to cope with pressures which are both inflationary (and reflect the costs of providing services in the South-East of England) and demand-driven. This excludes any improvement to volumes and standards of service beyond those required by the Government, for which ring-fenced funding is available, but this is not realistic within the current financial climate.

5 Efficiency improvements

5.1 The Cabinet requested all services to identify efficiency improvements achieved in absorbing pressures and costs within the budget guidelines.


5.2 Details of efficiency savings totalling £1.8m are set out in Appendix 2. Of this, £1.5m is on cash-backed savings:

· Looked after children (£0.5m). This is a continuation of the policy to reduce the number of children in non-county residential placements by providing more appropriate family support and other arrangements.


· Transitional housing benefit (£1.0m). Considerable effort has been made during 2001/02 to ensure that people in supported housing and those who also receive support in their own homes claim the housing benefit to which they are entitled. This has the effect of reducing net costs paid by the County Council.


6 Review of charges


6.1 The service's 2002/03 revenue budget includes income of £39.6m from fees and charges. Details of the material headings are included in Appendix 3.

6.2 There are some mandatory and national charges which the County Council is not able to vary. Some charges, most notably those for residential accommodation for adults and older people, require financial assessments based on nationally determined guidelines.

6.3 Discretionary charges are reviewed annually except when they are subject to agreements which cover longer periods when the review takes place at the end of the period of the agreement. Examples of those reviewed annually are the provision of meals for adults and older people and parental contributions for children in care.

6.4 The Government has recently published guidelines for the charging of clients receiving non-residential services. Implementation has to take place in two phases - October 2002 and April 2003. The main actions that need to be taken for the first phase include:

· Consult on options for a re-design of the charging policy, allowing time to take account of responses, make and notify decisions

· Identify existing users receiving Income Support or Job Seekers Allowance (Income Based) whose overall income equals the defined basic levels, plus 25%, to ensure that they cease to be charged

6.5 Although the County Council's policy falls largely in line with the underlying principles of the guidelines, the 25% `buffer' described above will mean a significant reduction in the charges that can be levied. In reviewing the policy and consulting on any changes, the potential impact on services as a result of lower income will need to be taken into account. For the purposes of setting the budget it has been assumed that there will be a cost-neutral impact of any changes that are implemented.

6.6 Given the changes in charging approaches it is proposed that increases applied from April 2002 will be made to cover inflation only. Other options for extending charges or implementing new charges will be considered in the light of the above.

6.7 Other aspects of the fairer charging guidelines are to be implemented from April 2003, including the provision of benefits advice to all users and carers at the time of a charge assessment. The County Council already has a pilot scheme in operation in the Winchester / Andover area and it is intended to extend this throughout the rest of the county. A report with proposals will be made to the Social Care Executive in March 2002.

7 Summary of additions and redeployment proposals

7.1 In addition to the base budget, the budget guidelines provided extra resources amounting to £2.9m. However, this is mostly required to maintain budgets funded during 2001/02 by the Promoting Independence Grant, which has been reduced by £2.7m in 2002/03. Savings of £1.5m described in paragraph 4.2 mean that £1.7m is available to meet new pressures, as set out in Appendix 4.

7.2 These pressures are summarised below:

· Services for children with learning or physical disabilities moving into adulthood (transitional age) - £1.2m. This includes the full year effect of children who became 18 during 2001/02. Typical costs are about £40,000 per annum per person.

· Criminal Records Bureau - £120,000. This new Executive Agency of the Home Office will be operational from March 2002 and replaces and extends current arrangements with the police. The `Disclosure Service' will provide Criminal record information on prospective employees, for which there will be a charge of £12 per person.

· Training.- £100,000. This is required to meet government requirements for various types of training, including foster carers and first aid. Tighter restrictions and higher targets mean that there is no scope to use other funding.

· Financial Assessments and Benefits - £100,000. It is proposed to extend the current pilot project of financial assessments and benefits officers to the whole of the County (currently based in Winchester / Andover). Also, the new guidance on charging for non-residential services requires this service to be in place by April 2003. It is anticipated that this service will be `self financing' from 2003/04.

· National Care Standards Commission - £100,000. From April 2002 the Commission replaces the service provided by the County Council's registration and inspection unit, for which there has been a reduction in the Council's SSA to offset this (although this over-estimated the Council's costs). Within the SSA settlement there is a figure of £4m nationally to reflect the estimated commissioning costs and extra charges that Councils will have to bear.

7.3 The pressures listed above represent an optimistic estimate of levels of spend on inescapable pressures, mostly legislative requirements. The list does not include further inflationary pressures due to market factors. Realistically it is highly likely that costs of care provided in the independent sector - particularly residential and domiciliary services - will increase by more than the budget provision of 2.5%.

7.4 Given the above factors there is no scope within the budget to progress any other developments that may be seen as high priority by Government and / or included in local service policies. These include:

· Recommendations from Best Value reviews

· Implementing foster care payments in line with nationally recommended rates

· Development of recruitment and retention initiatives

· Further improvements to services in order to increase ratings under the Performance Assessment Framework (PAF indicators)

7.5 Potential funding sources are being explored to enable progress on some of these eg Public Service Agreement, Children's Fund, other Government grants. However, it is too early to identify the impact this will have.

8 Other expenditure

8.1 The budget includes some items which are not counted against the cash limit. This includes budgets for central departments support services, except where they have been given to departments to buy services, and repair and maintenance of buildings. It also includes costs of member support within this committee's budget which are rechargeable to Policy and Resources Committee's budget for corporate and democratic core services.

9 Capital charges

9.1 Capital charges for 2002/03 for the use of assets amount to £6.5m, an increase of £0.6m. This increase is due to charges for new assets and revaluation of existing assets.

9.2 Capital charges are made to services in order to show the full cost of providing services. They impact on the charges set by services and trading units but they do not affect the County Council's total gross expenditure as they are reversed in the asset management accounts in the Policy and Resources budget and accounts.

10 Staffing statistics

10.1 The average number of staff in the base budget is 3384.

10.2 The proposals for growth and the redeployment of resources (Appendix 4) will lead to proposals for new staff. Additionally, there will be increased staffing requirements as a result of implementing Government priorities, in particular the Preserved Rights function transfer, the Building Care Capacity plan and other initiatives associated with increased government grants.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

None

Appendix 1

Social Services

Revenue Budget 2002/03

Calculation of the Base Budget 2002/03 - Summary of Cash Limited Expenditure

The following table shows the progression from the original budget for 2001/02 which was prepared at outturn prices 2001/02 to the base budget 2002/03 at outturn prices 2002/03.

	£'000	£'000
Original Budget 2001/02 at outturn prices		175,840
Transfers to/from other committees:		0
Adjusted original budget		175,840
Increase for inflation at November 2001 prices (see Annex 2)
Full year cost of pay awards in 2001/02		462
Inflation on business rates		4
		176,306
Other variations (see Annex 3)
Adjustment for non recurring items in 2001/02	(725)
Variations in Government grants	23,973
Function Changes
SSD Inspectorate to National Care Standards Commission	(458)
Virements between Committees
County Treasurers Department	14
Health and Safety Training from Personnel and Training	62
Grants from Policy and Resources Committee	60
Early Years Adjustment	(30)
Allowable Base Budget Adjustments
Joint Finance Taper	200
Care Leavers SSA Adjustment	(1,569)
Revenue Effects of Capital Schemes	6
		21,533
Base Budget at November 2001 prices		197,839
Allocation for future inflation		4,267
Base Budget 2002/03 at outturn prices		202,106

Annex 1 to Appendix 1

Social Services

Calculation of Base Budget 2002/03

Parameters used in the compilation

1	Definitions
1.1	The first stage in the construction of the budget for 2002/03 is the preparation of a base budget. The rules used this year are similar to those applied in 2001/02, which are summarised below.
1.2	The 2002/03 base budget is defined as the current year's budget adjusted for: · allocations made for inflation in 2001/02, plus the full year effect of the provision made for pay awards · exclusion of expenditure included in the 2001/02 budget which was financed by the carry forward of planned underspendings from 2000/01, the one-off use of reserves or balances, or which was approved on a non-recurring basis · the revenue effects of past capital programmes, subject to its inclusion in the approved capital programme · the full year effect of council-approved policies included in the current year's original budget, which have been introduced part-way through the year · correction of arithmetical errors in the current year's budget · The following specific items:
		Social Services		Increased costs from joint finance tapering arrangements
		Education		Variations arising directly from changes in the number of pupils in schools, pupils eligible for free meals and numbers of days in the school year
		Environment		Routine highway and street lighting maintenance arising from variations in road length
				Variations in waste disposal volumes
		Policy and Resources		Provision for County Council elections

Social Services Annex 2 to Appendix 1

Calculation of Base Budget 2002/03

Significant costs of inflation

1.	Variation between the actual cost of inflation in 2001/02 and the provision for inflation included in the 2001/02 budget
										£'000		£'000
	Additional cost of inflation											603
	Less
	- subsequent allocations made from the central contingency for inflation									(462)
	business rates									(4)
												(466)
	= Shortfall in the provision											137
2.	Significant costs of inflation between 2001/02 outturn and November 2001prices
2.1	Pay awards
	The additional cost in 2002/03 of the pay awards agreed in 2001/02 is:										£471,000
	The pay awards agreed were:
	Negotiating body:					Effective date
								%
	Hampshire Management Grades					1 April 01		5.0
	Local Government Services Staff					1 April 01		3.5
	Teachers					1 April 01		3.7
2.2	Non pay inflation
	Provision was originally made in 2001/02 for price increases of 2.5%
	The additional cost of price increases other than pay and net of income is £132,000
	The most significant non-pay variations from the 2.5% assumption made in the budget are as follows:
							Outturn 2001/02 to Nov. 2001						Cost in 2002/03
									%				£'000
	Energy costs - Gas								43.0				99
	Staff car allowances								9.1				276
	Independent sector purchasing								1.6				1,251
	Fees and Charges for Services								3.5				(1,628)
3.	Allocation for future inflation								£'000
	Provision for pay awards of 3% or 4% in 2002/03								2,259
	Provision for non-pay inflation at 2.5%								4,654
	Adjustment for expenditure financed by specific grants at outturn								(976)
	LGPS Pension Contributions								352
	National Insurance								(205)
	Aggregates levy adjustment								(35)
	Allowance for increased income								(1782)
	Total allocation for future inflation								4,267

Social Services Annex 3 to Appendix 1

Calculation of Base Budget 2002/03

Significant variations

Major variations between the 2001/02 budget at estimated outturn prices and the base budget for 2002/03 at November 2001 prices contributing to the increase of £21,397,400 (12.17%) are set out below.
	Variations against the repriced
	2001/02 budget
	£'000	£'000	%
Transfer of Inspectorate to National Care Standards Commission		(458.1)	(0.3)
The transfer of this service from 1 April 2002 has resulted in a reduction in the base budget for Service Strategy and Regulation
Balances for later allocation		3,875.4	2.2
Unallocated balances have increased by £3.9m, from £10.9m to £14.8m. Original unallocated balances of £10.9m included contingency, grant-related expenditure and new growth. There has been an increase in government grants of £24m (see Appendix 6), of which £14.8m remains unallocated (see page B79 of Appendix 5). There has been a reduction of £0.7m is respect of one-off items in 2001/02. The balance of £19.5m is made up of £8.5m allocations of contingencies and growth and new grants allocated of £9.5m (net of £1.5m transfer from Children's SSA). These have been allocated as follows:
Contingencies and other balances		8512.1	4.8
Childrens Services
	428.6
Older People	3,941.2
Adults under 65 years with Physical or Sensory Impairment	1,102.5
Adults under 65 years with Learning Disabilities	3,446.4
Adults under 65 years with Mental Health Needs	147.0
Other Adult Services	19.4
Management and Support	(58.0)
Assessment and Care Management	(515.0)
	Annex 3 to Appendix 1
New and increased grants		9,487.0	5.4
Children and Families	3,840.7
Older People (Building Care Capacity)	5,160.0
Adults under 65 years with Mental Health Needs	15.0
Other Adult Services (AIDS Support Grant/Asylum Seekers Grant)	471.3
Joint Finance Taper		202.1
This addition reflects the further financial responsibilities under the `pick-up' arrangements with the three health authorities for those schemes already in operation within Hampshire.

Assessment and Care Management		(27.0)
Assessment and Care Management costs combine Management and Support Services and Fieldwork under one heading in line with recommendations from the Best Value Accounting Code of Practice. Where possible, costs that can be directly attributed to services have been allocated to their relevant headings. However, there remains a large element of these costs that are apportioned across client groups. Increases in these figures, therefore, may not directly relate to increases in costs of specific client groups but will be influenced by the method of apportionment used.

Annex 4 to Appendix 1

Social Services

Base Budget 2002/03

Analysis of variations

	Adjusted Original Budget 2001/02	Variation in inflation to November 2001 prices		Other variations	Inflation allocation to 2002/03 outturn		2002/03 base budget
Cash limited expenditure	£'000	£'000	%	£'000	£'000	%	£'000
Service Strategy and Regulation	720.8	10.6	1.47	(449.9)	0.0	0.00	281.5
Balances for later allocation	10,964.5	0.0	0.00	3,875.4	4,267.0	0.00	19,106.9
Children and Families
Commissioning and Social Work	15,015.0	136.9	0.91	(355.4)	0.0	0.0	14,816.5
Children Looked After	14,636.7	43.9	0.30	1,332.0	0.0	0.0	16,012.6
Family Support Services	6,111.3	46.4	0.76	211.2	0.0	0.0	6,368.9
Youth Justice	1,005.7	20.5	2.04	1,875.0	0.0	0.0	2,901.2
Other Children's and Families Services	3,510.1	2.4	0.07	837.4	0.0	0.0	4,349.9
	40,278.8	250.1	0.62	3,920.2	0.0	0.0	44,449.1
Older People (Aged 65 or Over) including Older Mentally Ill
Assessment and Care Management	14,469.8	107.3	0.74	(169.6)	0.0	0.0	14,407.5
Net cost of services	53,614.8	495.0	0.92	9,057.4	0.0	0.0	63,167.2
	68,084.6	602.3	0.88	8,887.8	0.0	0.0	77,574.7
Adults under 65 years with Physical or Sensory Impairment
Assessment and Care Management	4,786.9	42.8	0.89	101.8	0.0	0.0	4,931.5
Net cost of services	11,355.3	(60.6)	(0.53)	1,039.7	0.0	0.0	12,334.4
	16,142.2	(17.8)	(0.11)	1,141.5	0.0	0.0	17,265.9
Adults under 65 years with Learning Disabilities
Assessment and Care Management	5,491.2	48.7	0.89	116.8	0.0	0.0	5,656.7
Net cost of services	22,616.7	(309.5)	(1.37)	3,355.1	0.0	0.0	25,662.3
	28,107.9	(260.8)	(0.93)	3,471.9	0.0	0.0	31,319.0
Adults under 65 years with Mental Health Needs
Assessment and Care Management	4,483.6	37.3	0.83	306.8	0.0	0.0	4,827.7
Net cost of services	4,719.4	(27.8)	(0.59)	(102.2)	0.0	0.0	4,589.4
	9,203.0	9.5	0.10	204.6	0.0	0.0	9,417.1

Annex 4 to Appendix 1

	Adjusted Original Budget 2001/02	Variation in inflation to November 2001 prices		Other variations	Inflation allocation to 2002/03 outturn		2002/03 base budget
	£000	£000	%	£000	£000	%	£000
Other Adult Services
Assessment and Care Management	474.9	2.7	0.57	(47.4)	0.0	0.0	430.2
Net cost of services	1,108.1	3.5	0.32	3.2	0.0	0.0	1,114.8
	1,583.0	6.2	0.39	(44.2)	0.0	0.0	1,545.0
Supported Employment	755.0	2.6	0.34	(59.9)	0.0	0.0	697.7
Asylum Seekers	0.0	0.0	0.00	450.0	0.0	0.0	450.0
Inflation contingency to be allocated across services	0.0	0.0	0.00	0.0	4,267.0	0.0	4,267.0
Total base budget	175,839.8	602.7	0.34	21,397.4	4,267.0	0.0	202,106.9
Expenditure outside of cash limit
Support Services and Repair and Maintenance of Buildings	5,581.8	23.0	0.41	(0.1)	0.0	0.0	5,604.7
Les: Charges to Corporate and Democratic Core	(28.7)	0.0	0.00	0.0	0.0	0.0	(28.7)
Capital Charges	5,798.9	0.0	0.00	665.6	0.0	0.0	6,464.5
Total net expenditure before grant	187,191.8	625.7	0.33	22,062.9	4,267.0	0.0	214,147.4
Specific Government grants (see Appendix 6)	(15,079.0)	0.0	0.00	(23,973.2)	0.0	0.0	(39,052.2)
Total net expenditure	172,112.8	625.7	0.36	(1,910.3)	4,267.0	0.0	175,095.2

Appendix 2

Social Services

Revenue Budget 2002/03

Proposals for efficiency improvements

			2002/03	2003/04	Staffing (FTEs)
					2002/03	2003/04
			£000	£000
1.	Cost increases absorbed
	Net cost of salary increments		320	320
			320	320
2.	Same outcome but at lower cost - cash savings
`	Looked after children		500	500
	Transitional Housing benefit		1,000	1,000
			1,500	1,500

Social Services Appendix 3

Revenue Budget 2002/03

Review of income

		Current Charge £	Total income (Budget ½) £'000	Date of last review	Proposed new charge Amount Effective date £		Is charge set to recover full cost? Yes/No	Is charge subject to an assessment scale determined locally? Yes/No	Additional income from increased or new charges £'000
1	Mandatory / National Charges
	Residential Care for Older People Residential Care for the Elderly Mentally Infirm Residential Care for People with Physical or Sensory Disability Residential Care for Adults with a Learning Disability Orchard Close - Standard Week	331.80 381.50 749.00 679.00 574.00	4185 830 134 564 98	April-01 April-01 April-01 April-01 April-01	343.00 392.00 770.00 693.00 588.00	April-02 April-02 April-02 April-02 April-02	Yes Yes Yes Yes Yes	No No No No No	134 23 4 64 3
2	Discretionary Charges
	Residential Accommodation for Children Community Homes for Children Secure Unit (Swanwick Lodge) Homes for Children with a Learning Disability	1296.00 3220.00 1029.00	0 1590 159	April-01 April-01 April-01	1330.00 3304.00 1057.00	April-02 April-02 April-02	Yes Yes Yes	No No No	46 38 0
	Residential Accommodation for Adults Orchard Close - Client Contribution	108.00	98	April-01	112.00	April-02	No	No	Included above
	Day Care Establishments Day Services for Older People Day Services for People with Mental Health Needs Day Services for People with Physical or Sensory Disabilities including transport excluding transport	130.00 190.00 260.00 210.00	34 6 239	April-01 April-01 April-01 April-01	135.00 195.00 265.00 215.00	April-02 April-02 April-02 April-02	Yes Yes Yes Yes	No No No No	0 0 3
	Day Services for Adults with a learning Disability including transport excluding transport	150.00 120.00	169	April-01 April-01	155.00 125.00	April-02 April-02	Yes Yes	No No	12

	Full Cost Annual Charges Day Services for Adults with a Learning Disability including transport excluding transport	4225.00 3365.00	included above	April-01 April-01	4360.00 3450.00	April-02 April-02	Yes Yes	No No	Included above Included above
	Banded Charges for Day Services for People with a Learning Disability. Fixed Charge per place including transport excluding transport Plus banded charge for each hour per week	3940.00 3050.00 501.00	included above	April-01 April-01 April-01	4020.00 3130.00 518.00	April-02 April-02 April-02	Yes Yes Yes	No No No	Included above Included above Included above
	Non Residential Charges Other Charges	Various	5566	April-01	See Annex 1	April-02	No	Yes	133
	Meals for Adults:- Day Services for People with a Physical Disability, Learning Disability, Mental Health Needs or Older People, Meals on Wheels and Luncheon Clubs per meal	2.30	630	April-01	2.40	April-02	No	No	27
	Hostels for People with a Physical Disability:- Transport charge per week	6.75		April-01	6.90	April-02	No	No	included above
	Parental Contributions Weekly Charge	16.05	20	April-01	16.60	April-02	No	No	7
	Hire of Rooms - per hour	20.00	1	April-01	20.50	April-02	Yes	No	0
	Hampshire Foster Care Placement Management Charge - per week	195.00	0	April-01	201.00	April-02	Yes	No	0
	Foster Care Assessments	1800.00	0	April-01	1849.00	April-02	Yes	No	0
	Broken down over the following elements:- Initial Enquiry Preliminary Checks/Contracts Preparation Groups Individual Assessment Standard Visit	121.00 129.00 178.00 1301.00 72.00	0 0 0 0 0	April-01 April-01 April-01 April-01 April-01	124.00 132.00 185.00 1334.00 74.00	April-02 April-02 April-02 April-02 April-02	Yes Yes Yes Yes Yes	No No No No No	0 0 0 0 0
	Total Additional Income								494

Charges for non-residential services Annex 1 to Appendix 3

		CURRENT		PROPOSED
BAND 1	SERVICE	CHARGE	WEEKLY UPPER LIMIT	CHARGE	WEEKLY UPPER LIMIT
Income Support and no other benefits
or		no charge	not applicable	no charge	not applicable
Income Support and the lower rate care component of Disability Living Allowance
BAND 2	SERVICE	CHARGE	WEEKLY UPPER LIMIT	CHARGE	WEEKLY UPPER LIMIT
Income Support and the lower rate of Attendance Allowance	care at home / personal assistance	£2.25 an hour		£2.35 an hour
or
Income Support and the middle rate care component of	day services	£2.70 a day/part of day	£12.35	£2.85 a day/part of day	£12.55
Disability Living Allowance	sitting services	£1.15 an hour		£1.20 an hour
BAND 3	SERVICE	CHARGE	WEEKLY UPPER LIMIT	CHARGE	WEEKLY UPPER LIMIT
Income Support and the higher rate of Attendance Allowance	care at home / personal assistance	£2.25 an hour		£2.35 an hour
or	day services
		£2.70 a day/part of day	£18.45	£2.85 a day/part of day	£18.75
Income Support and the higher rate care component of
Disability Living Allowance	sitting services	£1.15 an hour		£1.20 an hour

BAND 4	SERVICE	CHARGE	WEEKLY UPPER LIMIT	CHARGE	WEEKLY UPPER LIMIT
A total disposable income of £50 a week or less	care at home / personal assistance	£2.25 an hour		£2.35 an hour
	day services	£2.70 a day/part of day	a third of disposable income	£2.85 a day/part of day	A third of disposable income
	sitting services	£1.15 an hour		£1.20 an hour
BAND 5	SERVICE	CHARGE	WEEKLY UPPER LIMIT	CHARGE	WEEKLY UPPER LIMIT
a total disposable income of more than £50, up to and including £100 a week	care at home / personal assistance	£3.60 an hour	A third of first £50 of disposable income and half of rest of disposable income	£3.75 an hour	A third of first £50 of disposable income and half of rest of disposable income
	day services	£4.50 a day/part of day		£4.70 a day/part of day
	sitting services	£1.80 an hour		£1.90 an hour
BAND 6	SERVICE	CHARGE	WEEKLY UPPER LIMIT	CHARGE	WEEKLY UPPER LIMIT
a total disposable income of more than £100, up to and including £150 a week	care at home / personal assistance	£6.60 an hour	A third of first £50 of disposable income, half of next £50 and two thirds of the rest	£6.90 an hour	A third of first £50 of disposable income, half of next £50 and two thirds of the rest
	day services	£7.85 a day/part of day		£8.20 a day/part of day
	sitting services	£2.70 an hour		£2.85 an hour
BAND 7	SERVICE	CHARGE	WEEKLY UPPER LIMIT	CHARGE	WEEKLY UPPER LIMIT
a total disposable income of more than £150 a week	care at home / personal assistance	£9.40 an hour	A third of first £50 of disposable income, half of next £50 and two thirds of the rest	£9.85 an hour	A third of first £50 of disposable income, half of next £50 and two thirds of the rest
	day services	£16.60 a day/part of day		£17.35 a day/part of day
	Sitting services	£5.55 an hour		£5.80 an hour

Non-Residential Charging Policy - Special Expenses 2002/2003 Annex 2 to Appendix 3

	2001/02	Proposed 2002/03
Domestic help	up to 2 hours a week at actual cost	up to 2 hours a week at actual cost
Equipment maintenance:
Hoist	up to £4.20 a week	up to £4.30 a week
stairlift	up to £4.20 a week	up to £4.30 a week
wheelchair (manual)	£3.15 a week	£3.25 a week
wheelchair (powered)	£8.60 a week	£8.80 a week
powered operated/turning bed	£5.20 a week	£5.35 a week
powered reclining chair	£3.15 a week	£3.25 a week
Food : special diet for medical reasons	Up to £6.30 a week	up to £6.45 a week
Gardening	up to 2 hours a week at actual cost	up to 2 hours a week at actual cost
	subject to a maximum of £10 per week	subject to a maximum of £10 per week
Heating : extra heating for medical reasons	Up to £6.30 a week	up to £6.45 per week
Home maintenance	up to £4.20 a week	up to £4.30 a week
Incontinence aids and laundry	up to £16.80 a week	up to £17.20 a week
Lifeline/security system	up to £5.20 a week	up to £5.35 a week
Loan or debt repayment (more than 6 months)	actual weekly cost	actual weekly cost
Medication	actual weekly cost	actual weekly cost
Personal care arranged privately	reasonable weekly cost as agreed by care manager	reasonable weekly cost as agreed by care manager
Visiting partner in long-term care	actual weekly cost	actual weekly cost
e.g. hospital or residential care

Appendix 4

Social Services

Revenue Budget 2002/03

Proposals for new growth and redeployment of resources

			2002/03	2003/04	Staffing (FTEs)
					2002/03	2003/04
			£000	£000
Continuation of services provided using the Promoting Independence Grant			2,702	2,702
Services for children with learning or physical disabilities moving into adulthood			1,200	1,200
Criminal Records Bureau charges			120	120
Training			100	100
Financial Assessments and Benefits			100	100
National Care Standards Commission			100	100
Inflation			106	106
Total increase allowed in the budget guidelines			4,428	4,428

Appendix 5

Social Services

Revenue Budget

Reconciliation of the original 2001/02 budget on the following pages with the 2001/02
budget in the budget book.
	£'000	£'000
Total net expenditure on page B77 of the budget book		172,112
Less:
Recharges from Policy and Resources Committee not
included at this stage in respect of Support Services and
Repair and Maintenance of Buildings	4,469
Transfers between Committees	0	4,469
Total net expenditure for 2001/02 original budget		167,643

Appendix 6

Social Services

Revenue Budget 2002/03

Government Specific Grants (at outturn prices)

	Original	Original	Increase /
	2001/02	2002/03	(Decrease)
	£m	£m	£m
Promoting Independence	5.723	3.021	(2.702)
Carers	1.367	1.667	0.300
Children's services *	4.181	6.414	2.233
Invest to Save	0.150	0.030	(0.120)
Building Care Capacity	0.000	5.160	5.160
Mental Health	2.346	2.361	0.015
CAMHS	0.095	0.242	0.147
Training Support (TSP)	0.522	0.531	0.009
AIDS Support	0.078	0.115	0.037
Drugs and Alcohol	0.016	0.000	(0.016)
Asylum Seekers	0.000	0.450	0.450
Blind Homeworkers	0.003	0.003	0.000
Youth Justice Board	0.089	1.351	1.262
Supporting People	0.112	0.630	0.518
Deferred Payments	0.398	0.798	0.400
Residential Allowance	0.000	1.676	1.676
Preserved Rights	0.000	13.468	13.468
Performance Fund	0.000	0.937	0.937
Teenage Pregnancy	0.000	0.135	0.135
Young Persons Substance Misuse	0.000	0.064	0.064
TOTAL GRANTS	15.080	39.053	23.973

*Children's services grant includes transfers from SSA of £1.6m in 2001/02 and a further £1.6m in 2002/03.

Appendix 7

Social Services

Revised Budget 2001/02

Calculation of the Cash Limit for the Revised Budget 2001/02

The following table shows the progression from the original budget for 2001/02 to the cash limit for the revised budget 2001/02. Both are at estimated outturn prices 2001/02
		£'000	£'000
Original Budget 2001/02			175,840
Transfers to/from other committees:			0
Adjusted original budget 2001/02			175,840
Inflation
Provision added since the original budget for pay awards during 2001/02			469
			176,309
Other variations
Adjustment for non-recurring items in 2001/02 budget		(725)
Variations in Government grants		4,976
Virements between Committees -
	County Treasurers Department	14
	Interest on Balances (S28A)	93
Allowable Base Budget Adjustments -
Excess in the inflation provision		0
Other variations		(1)
			4,357
Cash Limit for Revised Budget			180,666

Social Services Annex 1 to Appendix 7

Revised Budget 2001/02

Summary comparing the Revised Budget with the Cash Limit

	Cash Limit		Revised Budget		Variation
		£'000	£'000	£'000		%
Cash Limited Expenditure
Service Strategy and Regulation		721	729	8		1.1
Balances for Later Allocation		11,060	688	(10,372)		(93.8)
Children and Families
Assessment and Care Management		15,136	14,677	(459)		(3.0)
Children Looked After		14,636	16,262	1,626		11.1
Family Support Services		6,112	6,274	162		2.7
Youth Justice		2,155	2,761	606		28.1
Other Children's and Families Services		3,581	3,385	(196)		(5.5)
TOTAL		41,620	43,359	1,739		4.2
Older People (Aged 65 or Over) including Older Mentally Ill
Assessment and Care Management		14,622	14,449	(173)		(1.2)
Net Cost of Services		56,054	59,999	3,945		7.0
TOTAL		70,676	74,448	3,772		5.3
Adults under 65 years with Physical or Sensory Impairment
Assessment and Care Management		4,859	4,891	32		0.7
Net Cost of Services		11,354	12,408	1,054		9.3
TOTAL		16,213	17,299	1,086		6.7
Adults under 65 years with Learning Disabilities
Assessment and Care Management		5,574	5,611	37		0.7
Net Cost of Services		22,616	25,831	3,215		14.2
TOTAL		28,190	31,442	3,252		11.5
Adults under 65 years with Mental Health Needs
Assessment and Care Management		4,503	4,803	300		6.7
Net Cost of Services		4,852	4,522	(330)		(6.8)
TOTAL		9,355	9,325	(30)		(0.3)
Other Adult Services
Assessment and Care Management		480	785	305		63.5
Net Cost of Services		1,145	1,254	109		9.5
TOTAL		1,625	2,039	414		25.5
Supported Employment		756	887	131		17.3
TOTAL		756	887	131		17.3
Asylum Seekers		450	450	0		0.0
TOTAL		450	450	0		0.0
OVERALL TOTAL		180,666	180,666

The above analysis reconciles to the cash limited expenditure for 2001/02. The budget monitoring report as at 30 November 2001 explains the variations between expenditure and budget and also describes measures in place to reduce the current budget pressure of £0.9m to achieve a balanced budget by the end of this financial year.