Contact: Gordon Shinn, ext 7526

1 Summary

1.1 The following decisions are sought:

1.1.1 That the actions to contain spending within the cash limit be approved.

2 Reason(s)

2.1 The Cabinet requires budget monitoring reports to be considered by the Executive Member.

3 Other options considered and rejected

3.1 Not applicable

4 Conflicts of Interest declared by the decision-maker or a member for officer consulted

4.1 Not applicable

5 Dispensation granted by the Standards Committee

5.1 Not applicable

6 Reason(s) for the matter being dealt with if urgent

6.1 Not applicable

Approved by: Date of decision:

Cllr Felicity Hindson

Contact: Gordon Shinn, Ext: 7526

1 Executive Summary

1.1 The projected pressure on the revenue budget has reduced from £0.9m at 30 September 2001 to £0.5m at 31 January 2002. The continuation of management actions means that it is expected that this will be managed down to within the cash limit by the end of the year.

1.2 Work continues to identify, and bring back into local placements, looked-after children in non-county placements. Although this has not been as productive as planned, with a number of expensive new placements offsetting the savings made, it contrasts with significant increases in recent years.

1.3 There are still significant pressures on adults' services, particularly learning disabilities. In addition to new high level dependency placements there is less confidence in the achievement of the level of savings previously reported in respect of transitional housing benefit, although it remains much higher than planned in the original budget.

1.4 A number of schemes have been introduced using the £2.4m Building Care Capacity (Cash for Change) grant. The primary purpose of this grant is to reduce delayed hospital discharges and it appears that the use of the funding is proving effective in achieving the targets set.

2 Introduction

2.1 The estimated year end position for 2001/02 as at 31 January is a pressure of £0.5m (0.3%), a reduction of £0.4m on the figure at 30 September (see Appendix 1). This compares with a reported £2.0m pressure at the same time last year, with a resultant year end overspend of £1.49m.

2.2 At the Executive meeting on 23 November a number of virements were approved, primarily relating to funds held centrally (mainly grants) pending determination of their allocation. These were incorporated into the revised budget that was approved by the Executive Member on 28 January 2002.

2.3 The most significant pressures are:

· Children & Families - £0.6m (1.7%)

· Physical Disabilities - £0.4m (2.8%)

· Learning Disabilities - £0.8m (2.7%)

2.4 These pressures, discussed in more detail below, are offset by savings on Management & Support, Fieldwork and Mental Health. In addition there is a reported underspend of £0.5m on contingency / grants, which will be allocated across client groups as appropriate.

2.5 A year end spend within cash limit is believed to be achievable as the department continues to manage down pressures as much as possible by:

· Reviewing commitments eg non-county placements

· Reviewing contracts (including block purchasing)

· Negotiating funding arrangements, particularly with health

· Maximising the use of government grants

3 Care Group Pressures

Children and Families

3.1 The main area of pressure is the achievability of savings on non-county placements. The £1m savings target included in the budget strategy was based on a `net return' of 63 children. The following table shows the position at 31 January:

* includes planned returns for the rest of the year

3.2 The annual cost of the new placements is £1.9m, whilst the annual cost of the returns is £2.3m i.e. a net saving of £0.4m. However, costs of some existing placements have increased due to extensions of arrangements beyond planned end dates. On average, new placements have started earlier than those returning.

3.3 This is virtually the same net position as reported at 30 September, with ten additional new placements offset by ten additional returns.

3.4 It is worth noting that this is the first year since 1997 that there has been a reduction in these placements.

Older People

3.5 The main pressure on this budget is the ongoing costs of packages of care implemented in 2001/02 using `winter pressures' funding from the Government via health. The Committee received an additional grant allocation of £1.9m in 2001/02, which covers approximately 50% of the estimated cost.

3.6 The cash limit for older people has been increased by over £4m since the start of the year, mainly from the winter pressures contingency and the allocation of the Building Care Capacity (`Cash for Change') grant. It is anticipated that the current reported pressure of £0.1m should reduce by the end of the year.

3.7 The use of the Building Care Capacity grant was set out in a plan jointly signed off with the three health authorities and agreed with other health partners (eg Trusts). The main proposals within the plan are:

· Targeted funding aimed at reducing the numbers of blocked beds e.g. rapid response services, priority discharge schemes

· Extension of support schemes such as `welcome home' and carers support

· Residential provision - nursing home, residential home and `step down'

· Development of intermediate care schemes

· Intensive domiciliary care support

· Provision of equipment and other aids to help people live more independently

3.8 There has inevitably been some `slippage' with schemes and negotiations have been ongoing to agree some flexibility in the use of the grant to ensure that maximum benefit is achieved.

3.9 The main purpose of the grant is to reduce delayed discharges from hospital and a target 25% reduction by the end of March was set. This target has already been met in each health authority and should continue to improve.

Physical Disabilities

3.10 There has been increased pressure due to:

· More complex and higher dependency clients

· Young people moving through transitional age to adult services

· Funding arrangements with health authorities

3.11 With regard to the funding arrangements with health there appear to be differences in the way in which `continuing care' issues are being treated. These cases are being reviewed and negotiations are taking place with Health partners.

Learning Disabilities

3.12 Pressures are similar to those with the Physical Disabilities budget described above. However, a provision of £0.9m was made in the budget in respect of the estimated costs of 49 children moving into adult learning disabilities services during the year.

3.13 Considerable work has been undertaken to attract as much Transitional Housing Benefit as possible, thus reducing costs. However, the estimated benefit from this has been reduced in current forecasts (but still remains above the target set in the original budget) due to ongoing issues that need to be resolved, including:

· Delays in housing benefit offices in approving THB claims. This created uncertainty as the actual amounts to be approved

· Some providers not submitting THB applications in a timely fashion thus reducing any potential financial impact this year

· Some providers not notifying the department when THB is approved

3.14 These issues are being addressed and it is anticipated that arrangements with benefits offices and providers will be more robust in 2002/03.

Recommendations

1. That the Executive Member notes the budgetary position at 31 January 2002 and approves the continuation of management actions to restrict spending to within the cash limit.

Section 100 D - Local Government Act 1972 - Background Documents

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.

None

Appendix 2