Barnet UNISON

FOR IMMEDIATE RELEASE: 6 June 2013

 

On Tuesday 11 June 2013 Barnet Council’s Budget and Performance Overview and Scrutiny Committee are to scrutinise the headline grabbing One Barnet Development Regulatory Services (DRS) contract award to Capita Symonds Ltd (Capita). This is the second big One Barnet contract Capita will have won from the council in less than six months.

 

Regulatory Services covers a range of key functions Barnet residents and government consider essential – including maintaining local roads, determining planning applications, enforcing trading standards and food safety – the function of many of these services is to regulate commercial operators in the public interest. 

 

Undoubtedly a key factor in the decision to award the contract to Capita is the claim of £39.1 million of “guaranteed financial benefits” over the lifetime of the 10 year contract.

 

But as the old saying goes “If it looks too good to be true, then it is probably is.” – the key to everything is in the detail.

 

Of the £39.1million “guaranteed financial benefits”¹ only a seventh (£5.3m) is cost savings which is significantly less than the Council’s own 2011 Business Case which claimed cost savings of £19,703,105.

 

The lower Capita cost savings represents a little over £0.5m annual savings.

 

This leaves £33.8 million (86%) of the “guaranteed financial benefits” dependent on winning new business.

 

The report states “Capita Symonds’ proposal for a greater use of automated and web self-service channels and social media may negatively affect certain groups with protected characteristics as there is a risk that they may not directly benefit from these improvements.”  These groups, which include older adults, disabled and vulnerable residents make up a large proportion of the borough’s population and many may feel alienated by these service ‘improvements’.

 

The Capita contract being recommended is entirely dependent on increasing fees and charges to Barnet residents and businesses with the clear intention to seek more work from outside the borough.

 

Our members working across these services are fearful that the Easy Council approach to delivering services will emerge with additional fees/charges if you want to ‘jump the queue’ for services. Is this an indirect stealth tax for council tax payers and local businesses?

 

John Burgess UNISON Branch Secretary said “Should the Council be dabbling in risky business ventures, or should it concentrate on simply providing high-quality value for money services that the people of Barnet expect and deserve? In the current stark economic climate questions need to be asked by councillors at the forthcoming scrutiny committee as to the wisdom of supporting something which is critically dependent on 86% income growth to succeed and where there is no evidence of any other local authorities having expressed an intention of joining the Joint Venture so far.”

 

¹ These Financial Benefits are not necessarily cashable savings which can be realised in cash terms.

 

***** Ends *****

 

Links

 

1. What is One Barnet watch this short animation http://ning.it/Qp5Adx

2. UNISON report on One Barnet DRS contract http://ning.it/11OQWlQ

3. UNISON financial report on One Barnet DRS contract http://ning.it/12mocvO

4. One hundred PLUS reasons why One Barnet is high risk and bad for residents and services http://ning.it/NAyJLY

5. 397 jobs “The true cost of One Barnet outsourcing” http://ning.it/11OSuMT

Executive Summary

Full Report click here

Inadequate financial arrangements at the setup stage together with poor financial monitoring has resulted in a shortfall in working capital thus requiring £1m loan to improve cash flow to meet day to day payment liability.

The change of the charging basis from block to usage basis and its impact was neither anticipated nor understood leaving an income shortfall of £1m.

The flat charge rate does not reflect the actual costing which can include enhanced payments resulting in income never catching up with costs to produce required profit.

There has been little or no evidence of understanding the business to anticipate deliverable growth for the future.

Winning new business was identified in the Business Plan 2012 as a key area which was critical to the success of the LATC. And yet the Business Plan – a Plan accepted by Barnet Homes – never looked at what might make YCB less competitive, namely the costs.

The inherent continuous pressure on income stream resulting from the methodology used for determining Personal Budgets is either not understood or ignored.

The current proposal undermines the need for qualified, professional, skilled staff to work in areas of care, the consequences of which are dangerous for service users and also for staff.

The Waking night service is set to be radically reduced as there has been no evidence to support the need for this service.

The removal of enhancements of a predominantly female workforce who are also often of black and ethnic minority backgrounds leaves YCB as an ‘associated employer’ open to potential Equal Pay challenges.

Recommendations

1     Return YCB services to L B Barnet

In the event that YCB ignores the above recommendation UNISON recommends the following actions as a matter of urgency:

2     Extend block contract

3     Retain enhancements for staff

4     Cease the benchmarking exercise, see Appendix D

5     Delete the post of Director of Social Care

6     Reinstate fully staffed night shifts

7     Provide an undertaking that an independent forensic financial review is carried out to establish business sustainability and viability of YCB

8     Require Winterbourne training as mandatory for all Board members and senior management. 

Your Choice is claiming that the proposed changes to staff terms & conditions are not going to have an impact on service quality.

For the sake of transparency UNISON is providing you with the cuts and changes for staff and we will leave it for you to decide if service quality will change.

Currently Support Workers are paid £12.40-£13.56/ hr and Assistant Support Workers are paid £9.49-£10.07/ hr

M As & When hours: Your Choice rely heavily on As & When hours. We learnt that staff now working As & When have already had their rate cut by 25% before the consultation began.

 

M 28 support workers posts to be reduced to 8 support workers posts.

 

M Creation of 20.5 assistant support worker posts

 

M Enhancements for working evenings to be stopped

 

M Enhancements for working weekends to be stopped  (these are paid at time and a half)

 

M Staff working a 5 day week to be moved to a 7 working week with no extra pay.

 

M Up to a sixth of the workforce have requested and been granted voluntary redundancy.  This will have a massive impact on a client group who have built long term relationships with workers in which ‘trust’ is a critical feature of this relationship.

 

M Your Choice has commissioned a consultant to carry out a benchmarking exercise with the market competitors. UNISON is already aware that many of the competitors are paying 30% less and some of these well below the London Living Wage.

When Barnet Council decided to embark on its mass outsourcing policy back in 2008, Barnet UNISON made a decision to enlist the support of the Professor Dexter Whitfield to help provide an analysis in order to try and engage in the process. Whilst the One Barnet mass outsourcing is now in its fifth year and the Council continues to embrace the political dogma of outsourcing, we are starting to see some of the earlier One Barnet outsourcing projects enter into difficulty. In this case it is the One Barnet Your Choice which was the first One Barnet project to be outsourced in February 2012.

The success of the Your Choice One Barnet Project was predicated on growth even though throughout the process no evidence was produced to substantiate these claims.

Below are a collection of extracts from all three reports produced by Dexter Whitfield on behalf of Barnet UNISON.

Links to the three reports are at the end.

2010

“The Adult Services option appraisal is limited in scope and depth of analysis and does not provide an acceptable evidence base on which to make fundamental decisions about the future provision of the services. The Council has a fiduciary duty to safeguard the public interest in the management of public services and assets and an obligation to maintain the integrity of the options appraisal and procurement processes. The Adult Social Care In-House Provider Services options appraisal fails to meet these obligations and responsibilities.” (ESSU Dexter Whitfield, Barnet UNISON  2010)

“If the Council intends to create the conditions for a repeat of post-transfer Fremantle style changes to terms and conditions then there will almost certainly be strident staff, trade union and community opposition.” (ESSU Dexter Whitfield Barnet UNISON 2010)

2011

“The LATC is, in effect, a cost cutting mechanism. An arms length trading company, with a proscribed budget, will be the service provider and employer, so the Council can relinquish responsibility for decisions taken by the company.” (ESSU Dexter Whitfield Barnet UNISON 2011)

“Detailed financial information has been excluded from the final version of the Business Case for no apparent reason.” (ESSU Dexter Whitfield Barnet UNISON 2011)

“Whilst it is true that in-house services cannot be purchased with a Direct Payment, this is not the case for a Personal Budget. A service user can decide to have part of the Budget used for in-house services and the rest of it paid out as a Direct Payment. Indeed a service user may wish to have none of the Budget paid out as a Direct Payment. These arrangements are already in place in the Council and we have been provided with a breakdown from Adult Social Services demonstrating that all these variations exist.” (ESSU Dexter Whitfield Barnet UNISON 2011)

“the Council intends to use personal budgets as a market mechanism to manipulate the market. They will be used to drive down costs, primarily, staffing costs, or to increase user charges so that users are forced to ‘pay more for less’.” (ESSU Dexter Whitfield Barnet UNISON 2011)

“The lack of a market analysis increases the risks for the LATC, service users and staff because a decision is being taken to establish a trading company without a clear understanding of the sector or market within which this company will have to operate.” (ESSU Dexter Whitfield Barnet UNISON 2011)

 

2012

 “A small reduction in income or an increase in costs will result in substantial losses for Adult Services – the business plan concedes Your Choice company is financially vulnerable. There is no assurance provided on the quality or reliability of data and assumptions used.” (ESSU Dexter Whitfield Barnet UNISON 2012)

“The policy of self-sustaining services, cost reduction strategies and pressure to maximise income to achieve profits will lead to new and increased charges.” (ESSU Dexter Whitfield Barnet UNISON 2012)

“Staff will face increased pressure on staffing levels, morale, working practices and terms and conditions, potentially leading to job losses and redundancies.” (ESSU Dexter Whitfield Barnet UNISON 2012)

Barnet UNISON demand: “The block contract transitional phase for Adult Services should be extended to three years.” (ESSU Dexter Whitfield Barnet UNISON 2012)

 

“The business case had a number of shortcomings:

• Corporate impact and strategic risks are inadequately addressed.

• Neither a value-for-money assessment nor a sensitivity analysis has been carried out. In addition, a cost benefit appraisal that includes wider impacts (economy, equalities, sustainability, environment) and distributional impacts.

• Fundamental questions and concerns regarding risk assessment, employment issues and equalities policies remain.”

 

“There has been a significant change in the financial forecasts of Adult Services between the business case (approved by Cabinet Resources Committee in May 011) and the publication of the Barnet Group Business Plan in early January 2012, seven months later …… Either gross mistakes were made in the preparation of the business case, or a new series of spending cuts and/or closures are planned to achieve this level of expenditure reduction.” (ESSU Dexter Whitfield Barnet UNISON 2012)

“The response to the high risks in Your Choice consists of cost reduction programme, deliver quick wins and programme further efficiencies, and close down schemes/services that cannot support themselves financially longer term. All the action in risk management has an April 2013 deadline.” (ESSU Dexter Whitfield Barnet UNISON 2012)

 

Links

1. ESSU Dexter Whitfield Barnet UNISON 2010 http://www.barnetunison.me.uk/sites/default/files/barnet-adults-options-appraisal%202010.pdf

2. ESSU Dexter Whitfield Barnet UNISON 2011 http://www.barnetunison.me.uk/sites/default/files/analysis-of-business-case-for-local-authority-trading-company%202011.pdf

3. ESSU Dexter Whitfield Barnet UNISON 2012

http://www.barnetunison.me.uk/sites/default/files/latc-analysis-2012.pdf

Join us

at the Your Choice Care workers lobby

On Wednesday 29 May at 5.30 pm outside Barnet House, N20

At 6pm we will be attending the Your Choice Board Meeting

This campaign concerns the plight of low paid social care workers facing a massive cut to their pay and terms & conditions. The scale of the attack is unprecedented and will drive already low paid workers further into poverty.

But it is not just the attacks to staff which are our concern, it is the impact this will have on the service delivery to vulnerable adults with disabilities.

UNISON is concerned that by ‘dumbing down’ care work will impact on quality of care as we have seen in the past at the private Winterbourne hospital where profit was put before care of residents.

‘Your Choice’ care workers are carrying out critical and personal care for vulnerable service users; which makes it all the more abhorrent to hear the case for these cuts is driven by the need to make a profit.

During consultation it has been confirmed the finances are worse that we were first led to believe. Apart from the £1million loan from Barnet Homes, they now need to make another £1million from staff costs.

UNISON is campaigning to bring these critical services back into the Council. The more we learn about the finances the more concerned we are. Instead of Barnet Homes spending their reserves on propping up a failed One Barnet project, they should use this money to try and prevent Barnet residents and their families from being moved out of the borough.

Last year the Council made a commitment in their own business case which said if the project failed they would bring it back in house.

Barnet UNISON commissioned Professor Dexter Whitfield to produce an analysis Barnet Councils proposals to outsource adult social care services. Please find links to reports below.

Links

1. ESSU Dexter Whitfield Barnet UNISON 2010 http://www.barnetunison.me.uk/sites/default/files/barnet-adults-options-appraisal%202010.pdf

2. ESSU Dexter Whitfield Barnet UNISON 2011 http://www.barnetunison.me.uk/sites/default/files/analysis-of-business-case-for-local-authority-trading-company%202011.pdf

3. ESSU Dexter Whitfield Barnet UNISON 2012

http://www.barnetunison.me.uk/sites/default/files/latc-analysis-2012.pdf

 

 

 

 

 

 

 

FOR IMMEDIATE RELEASE: ‘Capitaville’-Capita to takeover more Barnet Council services.

Today staff were told at a series of briefings that Capita Symonds is the preferred bidder to deliver a whole range of Council Regulatory services to Barnet residents and businesses.

 The services to be handed over to Capita include the following:

Trading Standards & Licensing, Land Charges, Planning & Development, Building Control & Structures, Environmental Health, Highways Strategy, Highways Network Management, Highways Traffic & Development, Highways Transport & Regeneration, Strategic Planning & Regeneration, Hendon Cemetery & Crematoria

Barnet Council has a number of statutory responsibilities to monitor the private sector in order to ensure the health and safety of their residents. The recent high- profile national public-health scandal about the use of Horsemeat in processed foods emphasises that private companies do not adequately monitor their own activities, leaving the public at risk. If Barnet Council is allowed to privatise these services, it will set a dangerous precedent for other councils.

Barnet Council has been promoting itself as an innovator for the future of public services by adopting the Commissioning Council model. In the last 12 months the Council has overseen a significant number of services outsourced to other providers. The full list of services are here.

John Burgess UNISON Branch Secretary said: “Barnet Council is making a huge mistake in handing over these critical services to the private sector. It is not just about the risks this brings but what it means in term of democratic accountability. Next year we have the local elections in May 2014. What options will there be for the electorate if all the council spend is tied up into complex contracts? As for all the remaining staff the message is stark: no matter how loyal you are, no matter how hard you work political dogma is dictating all services are to be outsourced. Today a number of our members have chosen to wear black armbands/ black clothing as a sign of the demise of the public sector ethos in Barnet Council.”

***** Ends *****

Notes to Editors.

Contact details: John Burgess Barnet UNISON on 07738389569 or 0208 359 2088 or email: john.burgess@barnetunison.org.uk

Links

1. What is One Barnet watch this short animation http://ning.it/Qp5Adx

2. UNISON report on One Barnet DRS contract http://ning.it/11OQWlQ

3. UNISON financial report on One Barnet DRS contract http://ning.it/12mocvO

4. One hundred PLUS reasons why One Barnet is high risk and bad for residents and services http://ning.it/NAyJLY

5. 397 jobs “The true cost of One Barnet outsourcing” http://ning.it/11OSuMT

 

 

 

 

 

1. Watch the film ‘A Tale of Two Barnets’ http://ning.it/PUBMVP

 2. Listen to Ken Loach talk about the One Barnet Billion Pound Gamble Film http://ning.it/PIzXpv

3. Watch the Billion Pound Gamble Film Trailer http://ning.it/PvZYxF

4. Listen to Mr Reasonable explain all about the OneBarnet magical box http://ning.it/P4vPVW

5. Watch the Billion Pound Gamble Animation http://ning.it/Qp5Adx

 6. Watch Barnet Residents occupy Hendon Town Hall http://ning.it/W7a08n

7. Listen to a Barnet resident speak at Barnet Full Council meeting http://ning.it/WgcUZ2

8. Learn about the Occupation of Friern Library here http://ning.it/W7alIe

9. Save Friern campaign showing how to campaign against the cuts http://ning.it/XhYQ1R

10. Watch the excellent short film called ‘A Polite Revolution’  http://ning.it/W7b7Fc

 

 

 

 

IMPORTANT Barnet UNISON Schools Conference

Tuesday 28th May 2013 9:30am – 12:30pm at Mapledown School, Claremont Road,

London NW2 1TR. (refreshments provided)

It is critical that UNISON members in schools attend this conference for more details as to how top register click here

 

 

To view pay scales click here