Agenda item

Report CS18081

The Committee considered a report setting out the budget monitoring position for the Care Services Portfolio for 2017/18, based on expenditure to the end of September 2017. 

The controllable budget was forecast to be in an overspend position of £61k, assuming further management action was taken throughout the year to maintain this position.  This was a result of projected overspends across a number of services including Assessment and Care Management, Learning Disabilities and Temporary Accommodation due to higher than expected demand for services and increased costs related to the impact of the National Living Wage on some care contracts.  The amount of overspend had been offset by one-off contributions from a range of sources including the Better Care Fund, the Improved Better Care Fund and Integrated Care Networks.  There was a projected overspend position for the Care Services Portfolio of £3,153kfor 2018/19, and further management action would continue to be taken to address this budget gap.  The ongoing increase in demand for services across the Care Services Portfolio would be a key consideration in the budget setting process for 2018/19.

The Helping People Home Grant had been provided to the Local Authority by the Department of Health as a Section 31 grant in 2014/15 to address pressures on acute hospitals caused by delayed discharges to social care.  It was proposed to release the remaining £40k of this funding to support the continuation of services within Adult Social Care. 

In considering the report, the Chairman was pleased to note the significant reduction in the projected Portfolio overspend for 2017/18 and thanked the Head of Education, Care and Health Services Finance and other Officers for the excellent work that had been undertaken to contain cost pressures.  A Member was concerned at the use of one-off contributions to mitigate the in-year overspend, and the Chairman underlined the need to review current service design as the scope to realise further efficiencies would be increasingly limited moving forward.  The Director: Adult Social Care noted that the majority of services within the Care Services Portfolio were statutory and that the Local Authority would continue to work with partners to develop efficient models for service delivery.  Members were advised that the Social Care precept on Council Tax had been introduced to address cost implications within care settings related to the introduction of the National Living Wage and could not be used to offset other costs.

In response to question from a Member, the Head of Education, Care and Health Services Finance confirmed that work to mitigate costs relating to the increase in demand for temporary accommodation was ongoing, and that this would include the use of contingency funds.  The Head of Education, Care and Health Services Finance reported that the Homelessness Reduction Act 2017 would come into force in April 2018 and was expected to further increase costs relating to the provision of statutory Housing services. 

With regard to the overspend in the Learning Disabilities Service, the Director: Adult Social Care advised that following an increase in the number of placements over recent months, work was being undertaken with Children’s Social Care and Education Services to identify clients earlier, particularly in relation to the transition from children’s services.

RESOLVED that the Portfolio Holder be recommended to:

1)  Note the latest projected overspend of £61k forecast on the controllable budget for 2017/18 based on information as at September 2017,which was a significant reduction in the previously projected Portfolio overspend of £990k  for 2017/18 based on information as at May 2017;

2)  Note the full year effect of cost pressures of £3,153k for the Care Services Portfolio budget for 2018/19;

3)  Agree the release of £40k held in contingency relating to the Helping People Home Grant;

4)  Note the comments of the Department in Section 9 of Report CS18081; and,

5)  Approve the Care Services Portfolio Budget Monitoring Report 2017/18.