To provide an update on the projected outturn as of the end of February for the financial year 2007/08 for Adult Social Care and Strategic Housing.

The Committee considered an update on the projected outturn as at the end of February for the financial year 2007/08 for Adult Social Care and Strategic Housing.

The Interim Finance Manager Adult and Community Services presented the report.  He said that the projected overspend on Adult Social Care had reduced to £3.4 million and explained the background to this calculation as described in the report

Additional funding had been allocated for adult social care within the Medium Term Financial Strategy.  Using this funding alongside additional income from fairer charging, new grant funding and revised arrangements with the Primary Care Trust meant that progress was expected to be made to achieving a balanced budget for 2008/09.

The forecast outturn for strategic housing was a break-even position, with an overspend on homelessness offset by savings in other housing budgets.  However, expenditure on homelessness remained a volatile and unpredictable area.

In the ensuing discussion the following principal points were made:

·         The performance of Medicare, the home care nursing agency, in delivering home care services was questioned.  In reply the Head of Adult Social Care said that Medicare had not been providing the level of service specified in their contract with the Council.  Officers had worked with Medicare to improve services and the number of complaints had now reduced. 

·         A further question was asked about the number of other contracted care providers and their level of performance.  It was replied that there were some 5-6 block contracts of the type in place with Medicare alongside a range of other arrangements for service provision.  No concerns of the type occasioned by the performance of Medicare had arisen with the other block contracts.

·         It was agreed to provide a briefing note to Members on the range of preventative measures being taken to tackle homelessness.

·         It was agreed to provide a briefing note to Members on the increase in nursing and residential packages, clarifying whether these were new packages or packages the Council had to fund because those receiving them had ceased to be self-funding.

·         It was noted that the Directorate was discussing free nursing care costs with the Primary Care Trust to ensure that everyone who was eligible for the service would receive it and that this might have a beneficial effect on the final outturn position.

·         That Members of the Committee had consistently expressed concern about the funding pressures faced by the Adult Social Care Service, recognising amongst other things the stress placed on staff in seeking to manage these pressures and take remedial action.  It was to be welcomed that it now appeared that there was a prospect of the budget balancing in 2008/09.

·         The position on the occupancy of the residential facility for older people at Leadon Bank, Ledbury was discussed.  The Head of Adult Social Care explained that the contract with Shaw Homes had assumed full occupancy of the extra care flats.  There were various reasons why this had not materialised including changed circumstances of service users whom it had been expected would take up the opportunity to occupy the new facilities.  Efforts were continuing to maximise occupancy.  It was noted that it was hoped that this would be achieved by September 2008.

Learning from the Leadon Bank experience, the Service was seeking to be proactive in the transfer of people from Elmhurst and Orchard House homes for older people to the new extra care facilities at Rose Gardens, Hereford.  It was possible that some of these people might move to Leadon Bank.

The Director of Adult and Community Services noted that the framework within which the Council had to operate when the contract with Shaw Homes was let had been different.  In particular the Council’s ability to raise the necessary capital finance to invest in its residential homes had been limited.  The Council now had prudential borrowing powers providing it with far greater flexibility.

RESOLVED: 

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

(b)    officers be congratulated on the efforts made to achieve greater control of the budget.