To provide an up date on the projected outturn for financial year 2007/08 for Adult Social Care and Strategic Housing.

The Committee received an update on the projected outturn for 2007/08 for Adult Social Care and Strategic Housing.

The Interim Finance Manager presented the report.  The projected overspend for 2007/08 on adult social care was £4.02 million representing a 9% overspend.  Remedial actions were set out in the report and it was noted that the impact of these measures would be reflected in the next report to the Committee.

The projected overspend on Strategic Housing was noted as £19,000.

The Director of Adult and Community Services referred to the reasons for the overspend and the strategy to address it that was set out in the report.  He emphasised that the matter was being taken very seriously in the knowledge that a continuing overspend could not be sustained by the Council.  He commented on the fairer charging policy designed to maximise income; the investment to be made to change service delivery, following the recent work on needs analysis for older people, which would in future provide a service which cost more than it did at present but less than it would have done without change; the investment in Herefordshire Connects; the pressures caused by expensive nursing and residential care packages and the significance of preventative action.

He also informed the Committee that a budget seminar had been scheduled for the afternoon of Wednesday 28th November.

In the ensuing discussion the following principal points were made:

·         It was asked whether the Primary Care Trust was meeting its funding commitments.  The Director reported that there were some areas for discussion.  The Council was working with the PCT to review a number of cases which may qualify for funding under new Continuing Care guidelines.  The current policy on placements under section 117 was also being reviewed.  Asked how this latter point was being addressed the Director said that the matter had been raised with the PCT, requesting an urgent review. 

·         The continuing budget pressure caused by the cost of providing temporary accommodation to support the homelessness service was raised.  In reply it was reported that whilst significant progress had been made, reducing the number from 55 families in January 2006 to 4 families now, it was proving hard to meet the target of zero.  There were further pressures as a result of prisoners being released early on licence and rising interest rates leading private landlords to sell properties or raise rents.

·         The number and cost of nursing and residential packages and the reasons for the additional 16 placements between April and August were discussed.  The Director reported that work was underway with the PCT to review the placements and ensure that the Council paid only for assessed need. 

·         In response to questions about projections for need the Director reiterated that detailed needs analysis for older people and those with learning disabilities had already been undertaken and further work was planned on physical disabilities and mental health.  However, there would always be an element of uncertainty over how the strategic findings would translate into individual service user requirements.

RESOLVED:

(a)               that the projected outturn for 2007/08 for Adult Social Care and Strategic Housing be noted;

            and

(b)               that the remedial measures to reduce the overspend as set out in the report be noted and a detailed report on the recovery plan be made to the next meeting.