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.

1.1.2 That the Executive Member welcomes the fact that the number of children's non-county placements has reduced for the first time in five years.

2 Reason(s)

2.1 In line with the requirement for regular budget monitoring reports, and to give an early indication of the likely outturn position .

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 reduced from £0.5m at 31 January 2002 to £0.2m at 28 February 2002. Work continues to fully analyse the end of March position, but this indicates that the continuation of management actions should have been sufficient to manage the pressures down to within the cash limit by the end of the year.

1.2 Work continues to ensure that government grant funding is maximised although there is uncertainty around the eligibility of some expenditure, against the grant conditions, and this may affect the final position.

2 Introduction

2.1 The estimated year end position for 2001/02 as at 28 February 2002 was a pressure of £0.2m (0.1%), a reduction of £0.3m on the figure at 31 January 2002 (see Appendix 1). Appendix 2 shows a comparison of forecast outturns at various points during each of the last five years. Although there was no February figure reported last year, the reduction from January to the year end was £0.5m and there was a similar trend in previous years.

2.2 The most significant pressures are:

· Children & Families - £0.4m (1.2%)

· Physical Disabilities - £0.4m (2.4%)

· Learning Disabilities - £0.8m (2.8%)

2.3 These pressures were described in some detail in the report to the Executive Member on 26 March 2002 and are repeated in Paragraph 4 below. They are offset by savings totalling £1.5m on Management & Support (£0.7m), Fieldwork (£0.1m), Mental Health (£0.2m) and contingency / grants (£0.5m, which will be allocated across client groups as appropriate).

2.4 The Fieldwork and Management & Support budgets identified separately in Appendix 1 are those that cannot be directly allocated to client groups and are apportioned at the year end. Savings have occurred primarily due to staffing shortages, particularly social workers.

2.5 A year end spend within cash limit is believed to be achievable as the department has continued 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 Government grants

3.1 Approximately £20m (11% of the Social Services net cash limit) is ring-fenced for spend to attract Government specific grants. This will increase to £39m (19%) in 2002/03, thus reducing the flexibility available for targeting spend according to local priorities. This point has been recognised by the Social Services Inspectorate in their recent Annual Review report (elsewhere on this agenda).

3.2 Conditions and guidance for the use of government grants are often issued very late, thus causing problems in planning and accounting for their use. This is particularly the case for two grants that were effective from October 2001 - Building Care Capacity and Deferred Payments.

Building Care Capacity (`Cash for Change')

3.3 This grant of £2.4m was intended primarily to reduce delayed discharges from hospital, and a target 25% reduction by the end of March 2002 was set. This target has been met.

3.4 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

3.5 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.

Deferred Payments Scheme (£0.4m)

3.6 This grant is primarily to encourage Councils to allow clients entering residential care to defer that part of their financial assessment that relates to the value of their main residence. This would then mean Councils would not force clients to sell their homes in order to pay their fees.

3.7 Hampshire County Council had already introduced a similar scheme. However, the new conditions (which were not released until after the effective date) require Councils to enter into formal agreements with clients. Although the formal documentation that complies with the detail of the grant conditions has been introduced, there remains some doubt (in common with other Social Service authorities) as to whether the full amount of the grant will be claimable. Existing clients who are eligible for the scheme have been written to with an explanation of the conditions.

4 Care Group Pressures

Children and Families (£0.4m)

4.1 The main area of pressure continues to be 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 28 February:

* includes planned returns for the rest of the year

4.2 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.

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

4.4 This is, however, the first year since 1997 that there has been a net reduction in these placements.

Older People (£0.1m)

4.5 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. Social Services received an additional grant allocation of £1.9m in 2001/02, which covers approximately 50% of the estimated cost.

4.6 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 be eliminated by the end of the year.

Physical Disabilities (£0.4m)

4.7 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

4.8 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. In particular, a framework is being established with the Strategic Health Authority with a view to securing consistent application by each of the Primary Care Trusts.

Learning Disabilities (£0.8m)

4.9 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.

4.10 Considerable work has been undertaken to attract as much Transitional Housing Benefit (THB) 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

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

5 Capital

5.1 The capital programme cash limit for 2001/02 is £2,877,000, including funds carried forward from 2000/01, capital receipts generated in 2000/01, Supplementary Credit Approvals for the development of mental health services, and a Joint Finance contribution from the former Portsmouth and South East Hampshire Health Authority. In addition, Policy and Resources has made a contribution of £3,331,000 towards the Older Persons Homes Strategy.

5.2 As at 28 February 2002, schemes to the value of £4,877,000 were committed as shown in Appendix 3. Progress on the major schemes is as follows:

1) Deeside Older Persons Home, Basingstoke - due for completion in February 2003

2) Green Meadows Older Persons Home, Denmead - due for completion in August 2002

3) Solent Mead Older Persons Home, Lymington - due for completion in December 2002

4) Havant Day Services modernisation - scheduled for completion in July 2002

5) Winchester Learning Disability Resource Centre (The Grove) - due to be opened in March 2002

5.3 Expenditure on minor works, furniture and equipment and information technology will be contained within their respective block allocation cash limits.

Recommendations

1. That the Executive Member notes the budgetary position at 28 February 2002 and approves the management actions taken to restrict spending to within the cash limit.

2. That the Executive Member welcomes the fact that the number of children's non-county placements has reduced for the first time in five years.

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 3

SOCIAL SERVICES

Capital Programme 2001/2002 - Position as at 28 February 2002