Campaign Against the Destruction of Disability Support Services (CADDSS) have produced a report on the Your Choice proposed changes to services.
You can read the full report here
Executive Summary
Your Choice Barnet Ltd (YCB) began operating as a Local Authority Trading Company (LATC) in February 2012. Within months it incurred operating losses and failed to attract new service users and revenue. Barnet UNISON had earlier published a series of highly critical reports on the options appraisal, business case and business plan, which predicted the problems that have since unfolded in YCB.
The core objective of this report is to set out the case for full and continuing engagement with service users, carers and community organisations, together with staff and trade unions and to show how YCB’s current approach is flawed, fails to provide value for money for the taxpayer and therefore unacceptable.
The case for engagement
There are four powerful reasons why YCB should engage with service users, carers and staff in the design, delivery and review of service delivery:
· The legal case for engagement.
· The relationship between the quality of employment and the quality of service.
· Best practice public management and service planning.
· The important impact of personal budgets on YCB finances.
There is significant evidence, including YCB’s own evidence, that the restructuring proposals will have a negative impact on the delivery and quality of services.
YCB’s pick and mix approach to engagement
YCB’s current approach to engagement is totally inadequate. It ignores the basic principles of engagement (see page 16). Evidence of YCB reports and Board meetings hint at a positive approach, but YCB adopts a minimalist approach in practice. This has led to service users, carers and CADDSS having little trust or confidence in YCB’s approach to engagement. Consequently, CADDSS has drawn up a set of core principles for engagement.
YCB suffers from three important democratic gaps that require immediate attention: a Governance Gap because parents do not have a direct representative on the Board; an Engagement Gap because engagement policy and practice is inadequate and unacceptable; and a Transparency Gap because disclosure is selective and limited.
The financial crisis deepens
The roller coaster financial forecasts for YCB between 2010-2012 reflected the way in which the options appraisal, business case and business plan were prepared. Barnet Council chose to ignore the detailed critical analysis and proposals submitted by Barnet UNISON. Instead it stuck to a pre-determined decision to transfer Adult Social Services to a new local authority trading company, supported by its outsourcing consultants and lawyers.
Predictably, YCB was incurring costs within a few months leading to first year losses and the £1m bailout. Despite the £180,000 first year cost saving measures and the financial impact of the restructuring proposals, the financial position is precarious. Some £951,587 of cumulative losses, reduced income and part repayment of the loan and interest, plus achieve the £162,000 budgeted growth income, have to be addressed in 2013-2014.
The case to return the service to in-house provision
There is a very substantive case for returning Your Choice Barnet services back to in-house provision to stabilise the finances of the six services; remove the threat to Barnet tenant’s housing management service with rapid repayment of the £1m bailout; take a more effective and measured approach to the development of services to avoid misuse of public resources in pursuing inappropriate and unachievable commercial objectives; and to prepare a three-year development plan with the engagement of service users, carers and community organisations together with staff and trade unions.
Recommendations
The YCB Board should immediately:
1. Engage in full and continuing engagement with service users, carers and community organisations, together with staff and trade unions, in the design, delivery and review of Adult Social Care services. This should include community meetings and facilitate the submission of proposals for the future of the services. It requires a new Engagement Plan prepared with service user and carer representatives.
2. Endorse the seven core engagement principles into the YCB engagement policy and commit to their application in practice (see page 16).
3. Agree not to implement the management and staffing proposals in the Consultation Paper published on 1st March 2013.
4. Immediately terminate the benchmarking contract with Valuing Care Limited and the consultancy contract with Care and Health Solutions Limited.
Barnet Council should:
5. Return YCB services to in-house provision at the earliest practical opportunity.
6. In the short-term, extend the block contract to ease YCB cash flow problems.
7. Prepare a three-year service development plan with service users, carers, s taff and trade unions.