Hampshire County Council

Executive Member - Adult Social Care Item 2

28 October 2005

Direct Payments: Permission to tender for Support Service Contract

Report by the Director of Adult Services

1

Summary

1.1

The following decisions are sought:

1. That approval be given invite tenders for the Direct Payments Support Service .

2. That approval be given for further 6 month extension to the existing support service contracts so that continuity in provision is ensured.

2

Reason(s)

2.1

This decision supports:

· Aim 1 of the Corporate Strategy - maximising life opportunities

· Aim 4 of the Corporate Strategy - building strong and safe communities

· Aim 5 of the Corporate Strategy - improving services

3

Other options considered and rejected

3.1

The development of an `in house' support service has been rejected for the following primary reasons:-

· Models of service delivery in other Authorities' demonstrate the effectiveness of independent sector provision of support services

· It is anticipated a range of organisations already have a wealth of experience and proven track record in the delivery of support for Direct Payments

· The anticipated growth of the scheme may be more readily responded to by the independent sector.

· Government guidance identifies the employment of an external, independent support service as good practice

4

Conflicts of interest declared by the decision-maker or other Executive Member 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:

.........................

Councillor Patricia Banks

Hampshire County Council

Executive Member - Adult Social Care

28 October 2005

Direct Payments: Permission to tender for Support Services Contract

Report by the Director of Adult Services

How the conclusion in this report fits with the Corporate Strategy

This scheme will impact on the delivery of the following Corporate Aims

Aim 1 - maximising life opportunities

Direct payments provide people with choice and control over the services they employ to meet their needs thereby maximising independence and life opportunities.

Aim 4 - building strong and safe communities

By enabling people to choose how their needs are met within their community setting and through the employment of local carers to provide assistance and support, Direct Payments significantly contributes towards the development of safe and strong communities

Aim 5 - improving services

The increased flexibility and individual nature of Direct Payments firmly establishes a needs and choice led culture thus improving services.

1.

Summary

1.1

The Adult Services Green Paper: Independence, Well-being and Choice highlights the role of Direct Payments in enabling choice and control. It proposes the clear intention to increase the numbers of people using Direct Payments including the extension to previously excluded groups.

Hampshire Adult Services has established a strong, positive national reputation for pioneering Direct Payments and establishing a culture where service users are encouraged to exercise choice and control over the way in which their needs are met.

In order to maintain this reputation it is critical that appropriate support and advice is readily available to new, potential and existing service users.

The existing support service contracts expire on 31 March 06. This report seeks to secure permission to invite tenders for a revised support service. It also requests permission to extend the existing contracts for a period of six months (ie until 31 September 06) to allow the tendering process to be completed.

2.

Impact Assessment

2.1

In compiling this report account has been taken of the requirements of the Corporate Equalities Plan and Race Scheme. Direct Payments are available to all the people of Hampshire. There is some evidence to indicate that there is a higher take up of Direct Payments by people from black and minority ethnic groups (Older Persons BME Audit, August 05).

The specification for the proposed support service will make the requirement that providers are able to respond appropriately to the needs of people from black and ethnic minority groups explicit.

3

Consultation with Local Members

3.1

None

4.

Context

4.1

Hampshire Adult Services has a long commitment to offering Direct Payments as an option to enable independence, choice and control. This, coupled with the Green Paper's intention to increase the take up of Direct Payments (including extending the scheme to previously excluded groups) provides a clear driver for ensuring the scheme remains a priority.

The Adult Services Department currently contracts with the voluntary sector to provide practical support to Direct Payment service users. The service is of critical importance to Direct Payments recipients who could not access and manage the scheme without it.

The existing Support Service contracts expire on 31 March 06. There has been a support service contract since 1997. At first the service targeted adults with a Physical Disability. However, evidence demonstrating the benefits of Direct Payments quickly grew and the DoH issued further guidance making direct payments more widely available and, in 2003, placing a duty upon Local Authorities to offer direct payments to all those eligible.

As a result, the demand for and provision of Direct Payments in Hampshire has significantly grown. This has led to an evolution of the role and size of the support service. The current support service now covers all sectors via a number of amendments to the existing contract and a separate additional contracts for people with mental health needs, carers and older people.

The current support service has not increased in proportion with the number of people using direct payments and this has had a detrimental effect on maintaining agreed quality standards and response times.

The table below shows the growth in numbers of direct payment users:

5.

The Direct Payments Support Service

5.1

Direct Payments Support Workers work to ensure :-

People make informed choices in considering Direct Payments - having good information on the risks and benefits, being a good employer, financial aspects etc. This includes raising awareness of direct payments with different groups and involvement in training workers.

Direct payment users can access relevant advice, information and training. for example: accounts, recruiting, health and safety, insurance, rotas, employment contracts, employee entitlements etc.

This is especially important during the first six months after someone first starts using direct payments. It must also take into account the individual needs and circumstances (eg someone with a learning disability or mental health issues may have specific individual support needs).

Where required, ongoing advice, guidance and support are available. This is particularly relevant where further recruitment is happening or an individual has a fluctuating condition.

There are currently four separate contracts for the support service. Southampton Centre for Independent Living (SCIL) have three contracts; one for the mental health sector and one covering other adults under 65 and one focussing on older people. Carers together have one contract for supporting carers (including parents of disabled children).

The proposed support service will amalgamate the current arrangements to achieve consistency and economies of scale. The service will support all direct payment users in Hampshire. Its focus will be upon providing practical support to people who are existing or new users of the Direct Payments Scheme.

6.

Financial Implications

6.1

In Hampshire over 995 people are using Direct Payments (August 05). The total current investment in the Direct Payments Support Service is £239,000. This figure amalgamates the sums currently committed by each sector in their 2005/06 base budgets as follows:

There is a clear direction from central government to significantly increase the take up of Direct Payments. This is emphasised in the Adults Green Paper.

Any decision regarding additional funding required to maintain and enhance the support worker service beyond its current level will be addressed as part of the forthcoming 2006/07 budget build process. Given the expiry date of the existing contract, this tender is solely based on the current funding available. However the tender document will require bidders to specify how they would deliver additional capacity if future funds became available.

Therefore permission is sought at this stage to invite tenders for the 2005/2006 contract figure of £239,000.

7.

Existing contract

7.1

The tendering process will not be complete before the expiry of the existing contract. To allow for this and in order to ensure consistency and continuity of the service the Executive Member is asked to agree to an extension of 6 months.

Recommendation(s)

That:

1

Approval be given to invite tenders for the Direct Payments Support Service. 3 year contract with an option to extend for a further year - estimated value £960,000 (at 05/06 prices).

2

Approval be given for the existing support service contracts to be extended for a further 6 months (until 31 October 06).