1 Adults and Communities Proposals for the Universal Resource Allocation System and the 2011/12 Budget 1

1 Timetable 2 10:00 – 10:15 Registration. 10:15 – 10:45 Presentation 10:45 – 12:15 Table discussions 12:15 – 12:30 Close.

1 Timetable 3 13:30 – 13:45 Registration. 13:45 – 14:15 Presentation 14:15 – 15:45 Table discussions 15:45 – 16:00 Close.

1 This presentation… Builds on the dialogue begun here on 27 th September 2010 Is part of a corporate budget consultation Sets out proposals for introducing a Universal Resource Allocation System. Gives our best understanding of how the spending review will impact on Adults and Communities Outlines our proposals for meeting the financial challenge Starts the process for gathering your views on our proposals 4

1 This presentation… This consultation considers the pricing mechanism (RAS) which is required prior to starting procurement against the Framework Contracts. therefore procurement of the Framework Contracts will not commence until after the Cabinet decision in March The framework contracts are designed to be in place to span the transition to Individual Budgets 5

1 This presentation… This consultation will shape the commissioning principles which will inform the types and volume of service we work with the market to develop and deliver. therefore work to commission services in line with those principles will not commence until after the Cabinet decision in March Work is progressing with regards to the impact of this delay on particularly 3rd sector providers whose agreements end in March

1 The Universal Resource Allocation System 7

1 Universal Resource Allocation System (1) Cabinet agreed to consult on the introduction of a Universal Resource Allocation System (RAS) on the 8 th November 2010 Subject to the outcome of the consultation, it is planned to introduce it for all service users from 1st April

1 Universal Resource Allocation System (2) Underpins the allocation of individual budgets into cash for all Allocates points on the basis of a self-assessment questionnaire Points are converted into an individual budget using a set £ per point rate It is a universal system as all service users are treated the same – regardless of which client group they are from 9

1 Universal Resource Allocation System (3) Unlike the traditional model of social care: The money will go directly to the citizen Citizens, not professionals, will decide how the money will be used The Council will help people to make choices, rather than making the choices for them. There will be a new landscape and budget reduction 10

1 Our next steps… 11

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1 Impact of the Spending Review on Adults and Communities 14

1 Spending review impact Protecting health and education spending will mean a significant reduction in funding for local government, especially in the next year. 15

1 Birmingham’s budget Faced with a £300m budget reduction, Birmingham will need to find savings from Social Care 16

1 2011/122014/15 £ /11 Budget294,217 Savings from the Spending Review and the end of Working Neighbourhoods Funding 39,35194,141 % Reduction13%32% Savings planned to meet demographic pressures 3,51519,070 TOTAL42,866113,211 % Total Reduction15%38% The Budget challenge 17

1 Care services for individual citizens £197m, 67% of spend Support services, capital charges and fixed central costs £33m,11% of spend 20% BCC 80% Independent Sector Social workers and commissioning £37m, 13% of spend Universal services for citizens £27m, 9% of spend Current spend 18

1 Direction of travel EFFICIENCY Exit from residential care Outsource homecare Management and admin reductions PERSONALISATION Individual budgets Prediction and prevention Income maximisation Enablement Market shaping Substantial savings made already to fund demographic growth - We can do more here but it won’t be enough A NEW OFFER Invest in new capacity Divert through enablement Use people's own resources Information and advice PRIORITISATION Raise eligibility criteria to critical Even if we take this route we may still have to.. BUT WE WILL ALSO NEED TO CHOOSE Options for making the savings 19

1 Overview (1) Adult social care accounts for £1 in every £4 spent by the Council Although the Government has announced new funding for care, our argument is that we need a different approach to health and care 20

1 National Picture PSS grant kept flat £1bn from DH to Councils by 2013/14 £1bn from NHS capital by 2013/14 NHS protected Adults and Communities has to save £39m in 2011/12 rising to £94m in 2014/15 due to the Spending Review and grant cut. BCC got no new funding as its grant was cut by 10.2% in 2011/12. In 2011/12 £15.393m will be transferred to BCC to invest in services that benefit health. PCTs have to save £104m in 2011/12, rising to £300m in 2013/14 for QIPP. Overview (2) Local impact 21

1 Overview (3) As a result, we propose a new offer that delivers efficiency and quality which is built on the Department of Health ‘Vision for Adult Social Care’ Our new service offer is based on the idea that the vast majority of people can use their own resources and skills to care for themselves and the community. 22

1 The new offer (1) Access for everyone to information, advice and signposting. Services that prevent people from needing care in the first place. Individual Budgets for people with low incomes/savings whose personal care needs are critical. A more joined up service with Health that keeps people out of care and helps them stay independent in their own homes 23

1 The new offer (2) We propose to use the new funding to develop a new model of care – not to keep the current one going. We want to give communities and people more control. We are protecting the new investment in care, but using it to deliver change. 24

1 The new offer (3) The new money will: –Develop capacity so that the funding reductions can be managed by new approaches. –Invest in the community and Third Sector to support their greater role in providing care. –Deliver financial benefits for health and care by doing things very differently. 25

1 The new offer (4) 26

1 The new offer is based on two outcomes 1) Quality of Life: We exist to ensure the quality of life of ALL citizens - today, tomorrow and always. This is a new offer for an existing outcome. 2) Health: We exist to assure the health of our citizens through a single approach to health and care and to meet the strategic ambitions of a world class city. 27

1 2011/12 Budget Proposals 28

1 Savings proposals (1) The new offer Savings 2011/12 Savings by 2014/15 A universal service providing information, advice and signposting that prevents people needing care in the first place and is more joined up with Health. An Individual Budget for people with low incomes/savings whose personal care needs are defined as critical under the revised eligibility guidance

1 Savings proposals (2) Personalisation Savings 2011/12 £m Savings by 2014/15 £m Services outside of the Universal Resource Allocation System such as mobile night care, the care centres and subsidies on extra care schemes Bring forward benefits in the Revised Full Business Case for personalisation, individual budgets and enablement

1 Savings proposals (3) Modernisation Savings 2011/12 £m Savings by 2014/15 £m Full year effect of the directorate restructuring and reduction in overhead costs Increased use of the independent and Third sector for enablement Creating an arms length community enterprise by 2013/14 for assessment and support planning Reduction in grants rolled into RSG TOTAL SAVINGS

1 Future spend 32 Care services for individual citizens £79m, 44% of spend – down from 67% Support services, capital charges and fixed central costs £25m,14% of spend Social workers and commissioning £31m, 17% of spend Universal services for citizens £46m, 25% of spend – up from 9%

1 Our best guess on the new investment for Birmingham 2011/122012/132013/14 onwards £m Share of new funding coming to Local Government Nil ? Share of enablement funding (NHS money) 6.0 ? Funding from NHS to support social care services for the benefit of health ? TOTAL ? 33

1 Begins Thursday December 2nd 2010 and finishes on Wednesday 2nd March We will be asking for views through questionnaires, s and consultation events. Website: Consultation 34

1 Question 1. In what ways could organisations provide the same level of adult social care as A&C but at a lower cost? Question 2. In what ways could we spend our money differently to prevent people’s adult social care needs reaching crisis point? In addition, as providers we would like you to consider: 35

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