Decision details

To approve the borrowing and investment of £2m for the procurement of a number of properties for housing for vulnerable people

To authorise the debt finance to the value of £2million to procure five properties to provide suitable accommodation for vulnerable people in Peterborough.

The health and social care benefits of providing this accommodation include:

·         Housing with support can reduce the risk of hospital admission

·         Housing with support can delay or avoid the need for registered care

·         Facilitate the delivery of personalised care and support

·         Provide a local higher quality solution for the client that is more manageable by the professionals

·         People can receive more suitable accommodation and support whilst maintaining links with their local communities

·         Offers better value for money than existing options, i.e. out of area placements.

Cabinet Members are reminded that the following national conditions apply to the IBCF:

·         Monies must be pooled into the Better Care Fund (BCF) Section 75 budget between Peterborough City Council (PCC) and Cambridgeshire  and Peterborough Clinical Commissioning Group (CCG). Joint agreement to the use of these monies between PCC and the CCG is therefore required before the monies can be spent

·         Monies must only be used for the following purposes:

·         Meeting Adult Social Care (ASC) needs,

·         Reducing pressures on the NHS, including supporting more people to be discharged from hospital when ready; and

·         Ensuring the local social care provider market is supported.

·         PCC must work with the CCG and providers to meet the BCF national condition (Managing Transfers of Care) as outlined in the Integration and BCF Policy Framework and Planning Requirements 2017-19.

·         Quarterly reporting on progress of spending plans is required to the Department of Communities and Local Government (DCLG) – this reporting condition only relates to the Spring Budget monies element of the IBCF monies and requires Section 151 officer sign off.

·         The IBCF monies are paid directly to PCC via a Section 31 grant in monthly instalments.

Adult Social Care is facing financial pressures resulting from increasing costs of care and increasing needs of an expanding ageing population. These issues link to rising numbers from hospital discharge are collectively placing huge financial demands on the ASC Resources in the short term.

This is due to a number of factors including:

·         Increased and rising demand from the hospital discharge route, with people being discharged with higher care needs and less time available to identify suitable arrangements; a consequence of which is the use of care solutions which are either directly more expensive or less likely to support recovery and independence.

·         Increase in care costs, associated with increased high level care needs.

·         Reduced capacity in the home care market, resulting in increased provider rates.

·         Rising number of “ex-Self-funders” and the associated financial impact on the Council when they are unable to afford their ongoing care costs.

·         Impact of the National Living Wage on the cost of ‘sleep ins’ and associated care costs.

ASC plan’s for the normal “Winter Pressures” and the resulting impact on the ISP Budget has in the past been covered by the savings tracker, however the savings allowance for risk mitigations is empty and the “funnel” has been exhausted.

Option 1 - To use all £2m from the IBCF to invest into housing options for vulnerable people.

·         No funds to mitigate budget cost pressures

·         Risk of ASC not meeting its Budget

·         No flexibility

·         Provides investment in housing options

·         Meets DCLG Conditions.

Option 2 - To retain all of the £2m to mitigate budget cost pressures 

·         Mitigates budget cost pressures

·         Ensures ASC Budget is met

·         No investment in housing options and current savings in relation to housing – i.e. reduced care packages cannot be met (already in the MTFS)

·         DCLG Conditions state funds have to be spent by March 2018.

·         Potential loss of funds, if budget cost pressures do not materialise to full £2m

Option 3 – To use a proportion of the IBCF Funding to invest into housing options for vulnerable people. Council uses debt finance to invest into housing option.

·         Enables ASC to retain a balance to mitigate budget cost pressures.

·         Maximum flexibility

·         Ensures ASC Budget is met.

·         Enables investment into housing options

·         Avoids loss of funds, if budget cost pressure does not materialise.

·         Meets DCLG Conditions

Option 4 – Recommended option

To use totally debt finance (£2m) to invest into housing options for vulnerable people. Enabling the Council to retain the £2m from the IBCF funding to mitigate winter cost pressures. If the winter cost pressures do not materialise by March 2017, arrangements can be made to pay down the debt finance.

·         Enables ASC to retain a balance (£2m) to mitigate winter cost pressures.

·         Maximum flexibility

·         Ensures ASC Budget is met.

·         Enables investment into housing options

·         Avoids loss of funds, if budget cost pressure does not materialise.

·         Meets DCLG Conditions.

None.

None.