To ensure the sustainability of services for carers during 2017/18, in the context of significant funding reductions, prior to the implementation of a new carers strategy, by making a reduction in funding to the carers health and wellbeing service via a contract variation, and awarding a direct contract for the delivery of the carers hub service.

THAT:

(a)        a contract is awarded to Herefordshire Carers Support (HCS) to provide a hub based support service to carers for a 12 month period from 1 April 2017, with a maximum value of £160k;

(b)        a variation in the current contract with Crossroads Care is approved so as to terminate the contract early on 31 March 2018, and to reduce the contract value for 2017/18 to £223k. This variation has been agreed by Crossroads Care;

(c)        an exemption to paragraph 4.6.13.2 of the council’s contract procedure rules shall be granted to enable the direct award of the hub based support service.

A reduction in funding to contracted services to carers as a whole is proposed to help achieve financial balance as outlined in the council’s medium term financial strategy (MTFS). A direct award is proposed for the carers hub service in view of the restrictive timetable and to ensure some continuity of support for carers until new services can commence in 2018, following an open procurement.

The role and design of future services for carers from April 2018 will be determined by the new carers strategy and so it is recommended that the current two services end on 31 March 2018. To facilitate this, the new contract for the hub based support service will be for one year only and the contract for the carers health and wellbeing service will be foreshortened by five months.

To continue the funding of the two carers support services at the current level of £554k. This option is not recommended as it would create an unfunded cost pressure for the council of at least £191k and so prevent the council from meeting its medium term financial strategy targets. The option could only be afforded by making yet further reductions from other important social care or preventative services, which have already experienced significant budget cuts. No suggestions for such alternative savings have emerged from consultation around the proposals to reduce the funding of the two services.

Commission interim services to March 2018 by way of a competitive tender procurement process, rather than making contract changes or a direct contract award. This option is not recommended as there would have been insufficient time in which to carry out a procurement, so that this would lead to a significant disruption of services during the spring and summer of 2017, including services to young carers.  It would also cause a further level of destabilisation of the two provider organisations, beyond that occasioned by this proposal and, in the case of the carers health and wellbeing service, would involve breaking the contract.