Archived decisions

Contact: Alan Hagger , Ext: 7063

1. Summary

The following decisions are sought:

1.1 That in order to provide stability in the Supported Housing Sector, predictable income streams for service providers and to safeguard Hampshire County Council as the Administering Authority (AA), from possible financial risk Fixed Capacity Contracts will be introduced.

1.2 That the Executive Member for Social Care advises the Hampshire Supporting People Commissioning Body accordingly.

2. Reason(s)

2.1 The new Fixed Capacity Contracts will minimise bureaucracy, safeguard the AA and help to stabilise the supported housing sector.

3. Other options considered and rejected

3.1 Issuing steady state block subsidy contracts has been considered and rejected as rendering the AA with a potential liability.

4. Conflicts of Interest declared by the decision-maker or a Member or Officer consulted

4.1 None.

5. Dispensation granted by the Standards Committee

5.1 None.

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

6.1 Not Applicable

Approved by: Date of decision:

Councillor Felicity Hindson

Contact: Alan Hagger Ext: 7063

1. Legal Decision Making Context

1.1 Under the constitutional arrangements set out in the Supporting People grant conditions (Schedule 1), and now part of the Memorandum of Understanding between Hampshire County Council and the Supporting People County Core Group (CCG), the Executive Member for Social Care can advise the CCG on all matters relating to finance management. The Executive Member can also make recommendations for agreement.

2. Previous Decisions

2.1 On 15 November 2002 it was agreed to adopt a policy of using Block Subsidy contract arrangements for long term chargeable services, and Block Gross contracts for short term, non chargeable services.

2.2 The arrangement agreed on 15 November will remain in place until services are reviewed within three years of April 2003.

3. Reasons for Fixed Capacity Contracts

3.1 Contracts are priced by agreeing unit costs and multiplying that figure by the number of eligible service users.

3.2 This arrangement creates uncertainty for service providers as it is not possible to predict monthly income with certainty.

3.3 In addition there are two significant areas of financial risk for the AA in these arrangements:

3.3.1 Firstly there are some services that have variable packages and cost for support. If, for instance, a non banded service has a vacancy, the AA has no control over the extent, and therefore the cost, of the package provided for any new person that moves in.

3.3.2 Secondly, Block Subsidy contracts define a capacity larger than that being paid for through Supporting People. The potential liability is therefore much greater than the money that has been received to fund Supporting People services.

3.4 In addition to financial vulnerability, the need to track individuals that results from the contracts being funded according to individual eligibility has led to considerable ongoing administrative work.

4 Fixed Capacity Contracts

4.1 Rather than defining service capacity in terms of units or individuals Fixed Capacity contracts define capacity in terms of the number of hours provided.

4.2 Following service reviews that capacity would be agreed. If demand exceeds capacity the provider would be encouraged to bid to increase capacity through District Core Groups that can be judged alongside other bids for increasing capacity or new services.

4.3 The result would be that the financial liability is planned and predictable; investment can be co-ordinated and strategic; the programme can be administered without large amounts of administrative labour.

4.4 Where services have funding that is not Supporting People it will be necessary to ensure that the views of partner funding agencies are sought.

4.5 Discussions with service providers have revealed that they are very happy with the proposed change, many wanting to change to Fixed Capacity Contracts with immediate effect.

4.6 Although the payments to service providers will be fixed on an annual basis the contract between the AA and the service provider will make clear that no service user who would have received services under current arrangements will be refused services because of the new arrangements.

RECOMMENDATIONS

1 That the administering authority will introduce the new Fixed Capacity contracts following service reviews.

2 That the Hampshire Supporting People County Core Group is advised accordingly.

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.

NB the list excludes:

1. Published works.

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