1. Successful partnership funding application to Our Place by Inspiring Families to develop and deliver peer support groups across Cheltenham. What is Our Place? Our Place aims to give people more power over local services and budgets in their neighbourhoods, aligning these with all the other resources that the community can bring. One requirement of Our Place funding is to put in place a Cost Benefit Analysis (CBA) system to evaluate the success of the project. Why are we talking about Cost Benefit Analysis? Cost Benefit Analysis > > Tracy Brown & Bernice Thomson

2. Why would Cheltenham Partnerships want to use CBA for other projects? Because CBA delivers: Informed decision-making Cost effective decision-making Equitable decision-making Cost Benefit Analysis > > Tracy Brown & Bernice Thomson

3. HM Treasury Five Case Model for delivering public value. Strategic Economic CommercialFinancial Management Achievable and can be successfully delivered Affordable within available funding Compelling – strategic fit & business needs Optimises value for money Commercially viable Cost Benefit Analysis > > Tracy Brown & Bernice Thomson

4. HM Treasury Five Case Model for delivering public value. Strategic Economic Commercial Financial Management Achievable and can be successfully delivered Affordable within available funding Compelling – strategic fit & business needs Optimises value for money Commercially viable What CBA will help measure CBA will also help measure social value Cost Benefit Analysis > > Tracy Brown & Bernice Thomson

5. All additional costs needed to deliver project CBA helps us to weigh costs against benefits fiscal economic Social costs benefits Cost Benefit Analysis > > Tracy Brown & Bernice Thomson

6. Costs can be: CAPITAL ……. One off – e.g. purchase of new building or equipment. REVENUE…… Costs that are incurred on a regular basis – e.g. salaries IN-KIND……. Those things provided free of charge – e.g. volunteer time or loan of equipment

7. Cost Benefit Analysis > > Tracy Brown & Bernice Thomson Types of benefit that can be evidenced by CBA Fiscal benefits Economic benefits Social benefits Savings to the taxpayer such as reduced health service, police or education costs. Gains to: Individuals – e.g. increased earnings. The whole economy – e.g. increased gross value added (GVA) due to higher skills levels. A way to evidence, to commissioners or funders, social value or gains to society – e.g. improved health and wellbeing or increased community cohesion. Regardless of focus BUT dependent on purpose of evaluation Where the priority might be meeting the challenge of reducing budgets. Where whole area decisions may be needed to maintain & improve standards of living Where the focus is on making improvements to people’s lives.

8. Cost Benefit Analysis > > Tracy Brown & Bernice Thomson Applying CBA: CBA should be applied: Before starting the projectto forecast savings at this stage it will be heavily based on assumptions During the projectto track savings if not going well could make a decision to stop project or make changes to project After the projectto confirm savings if successful make decision on what to do with savings or if partial success could re-model At the start of the project your savings forecast will be heavily based on assumptions. So you need to be very explicit and honest about what those assumptions are. As you progress through the project your forecast will become more and more accurate. As with any project undertaken you need a good project plan. For Our Place we have been told that we must use their logic chain as our planning tool.

9. Conditions Local context Policy context What needs to be in place for change to occur? Rationale Evidence & assumptions linking outputs to outcomes & impacts Inputs What resources do you have? Activities What will the programme do? COSTS Outputs What will the programme provide? COSTS Intended Impacts What are you trying to achieve? BENEFITS Programme Objectives High level summary of intended outcomes Project: Intended Outcomes What is the change you want to see? BENEFITS

10. Conditions Local context: Too many families accessing crisis services. High concentrations of deprivation in certain areas. Recent reduction in universal services. Policy context: Renewed focus on early intervention. Welfare Reform Act Localism Conditions: Willingness of partners to deliver services innovatively Willingness of partners to align budgets Willingness of communities to take ownership of services. Intended Impacts What are we trying to achieve? Improved family life. Reduction in number of agency hours per case. People become part of the solution to their own problems. Reduction in need for crisis services. BENEFITS Programme Objectives To use a strength based approach in order to build capacity of families and individuals to be part of the solutions rather than only part of the problems. To reduce pressure on public funding by streamlining the journey of service users through the maze of available services. To prove the value of working in a strength based partnership in order to encourage alignment of budgets. Project: Cheltenham Our Place Intended Outcomes What is the change we want to see? Community networks will expand. Increase in resilience, wellbeing and capacity of individuals. Increase in individuals seeking advice and support from within their community. People will access appropriate services sooner. BENEFITS Outputs Four peer support groups meeting on a regular basis. Minimum of eight peer leaders trained. Twelve community trusted individuals trained. Activities Establishing peer support groups. Develop and deliver peer leader & trusted individual training. Inputs IF worker. BT & TB joint project managers. Our Place funding. Partner staff costs for steering group & support for peer groups. Rationale Evidence from IF families that sustainable change happens when families take ownership of their problems and link back into their communities. COSTS

11. 11 Outcomes need to be at different levels: USING THE CHELTENHAM OUR PLACE PROJECT AS AN EXAMPLE: Outcomes for beneficiaries – e.g. parents who attend the peer support groups. Outcomes for the wider community – e.g. neighbours of chaotic families. Outcomes for organisations in the programme – e.g. Police, GCC, VCS Outcomes for practitioners – e.g. Social Workers Outcomes for services – e.g. Social Care

12. 12 How will we measure outcomes? USING THE CHELTENHAM OUR PLACE PROJECT AS AN EXAMPLE: What data do we need? Individual journey travelled. Do we already collect it? Yes with existing families receiving intensive support. We use outcome stars to measure this. We will increase use to include all individuals involved with this programme. It is important not to overstate. We will cost a % of case studies We will factor up the savings

13. Areas included in the Treasury approved CBA model to which you could apply outcomes and forecast savings: Worklessness benefits payments ASB incidents Offending Level 2 skills Homelessness Drug/alcohol dependency Looked after children Eviction Mental health A & E visits Economic and fiscal: TREASURY APPROVED Individual well-being Family well-being Children’s well-being Community well-being Social value: AWAITING TREASURY APPROVAL BUT THEY ARE COSTED AND YOU CAN USE THEM IN YOUR CBA MODEL

14. Homelessness Outcome category Outcome detail Cost/saving detailAgency bearing cost level 1 level 2 unitEstimated cost/saving homelessness Homelessness application - average one-off and on-going costs associated with statutory homelessness Local authority RSLPer application £ 2,656 homelessness Temporary accommodation - average weekly cost of housing a homeless household in hostel accommodation Local authority Per week £114 homelessness Homelessness advice and support - cost of a homelessness prevention or housing options scheme that leads to successful prevention of homelessness Local authority Per scheme £682 homelessness Rough sleepers - average annual local authority expenditure per individual Local authority Per year £8,391 HOUSING Extract from the unit cost database Part of the HM Treasury toolkit

15. 15 Running the CBA Model And don’t panic! There is a spreadsheet that does the calculations for you! % engaged Total cohort How many potential beneficiaries? How many will we reach? % retained How many will complete the programme? % impact % dead weight % value optimism bias % The amount saved How many will achieve desired outcome? What would have occurred anyway? What is the value of desired outcome? How confident are we in the evidence?

16. 16 Running the CBA Model % engaged Total cohort How many potential beneficiaries? How many will we reach? % retained How many will complete the programme? % impact % dead weight % value optimism bias % The amount saved How many will achieve desired outcome? What would have occurred anyway? What is the value of desired outcome? How confident are we in the evidence? A made up example using the Cheltenham Our Place project: Reduction of the number of individuals who are alcohol dependent. 1000 10% £3198 12% 25% 50% -40% £23,026 Families with one or more member alcohol dependent 120 30 15 3 = 12 £38376 Individuals no longer alcohol dependent because of this project

17. 17 Confidence Grade Population/ cohort data Evidence baseAge of dataOptimism Bias correction 1 Figures taken from agency data system Randomised control trial in the UK Current data (<1 year old) 0% 2 Figures derived from local stats International randomised control trial 1-2 years old-5% 3 Figures based on national analysis in similar areas Independent monitoring of outcomes with a robust evaluation plan 2-3 years old-10% 4 Figures based on generic national analysis Practitioner monitoring of outcomes with a robust evaluation plan 3-4 years old-15% 5 Figures based on international analysis Secondary evidence from a similar type of intervention 4-5 years old-25% 6 Uncorroborated expert judgement >5 years old-40% Calculating your Optimism Bias adjustment %

18. 18 Outcome category Outcome detail Cost code Cost / saving detail Agency bearing the cost / making the saving Unit Fiscal cost Level 1Level 2 Estimated cost/savin g Year Updated cost/ saving HEALTHALCOHOLHE1.0Alcohol misuse - estimated annual cost to the NHS of alcohol dependency, per year per dependent drinker NHSPrimary Care Trust / Clinical Commissionin g Group Per person per year £ 1,800 2009/10 £ 1,962 HEALTHDRUGSHE2.0Drugs misuse - average annual fiscal savings resulting from reductions in drug-related offending and health and social care costs as a result of delivery of a structured, effective treatment programme Criminal Justice System NHSPer year £ 3,419 2010/11 £ 3,631 HEALTHHOSPITALHE3.0A&E attendance (all scenarios)NHSPrimary Care Trust / Clinical Commissionin g Group Per incident £ 109 2011/12 £ 113 HEALTHHOSPITALHE4.0A&E attendance - no investigation and no significant treatment NHSPrimary Care Trust / Clinical Commissionin g Group Per incident £ 64 2011/12 £ 66 HEALTHHOSPITALHE5.0A&E attendance - investigation with subsequent treatment NHSPrimary Care Trust / Clinical Commissionin g Group Per incident £ 125 2011/12 £ 130 HEALTHHOSPITALHE6.0Hospital inpatients - average cost per episode (elective and non- elective admissions) NHSPrimary Care Trust / Clinical Commissionin g Group Per episode £ 1,713 2011/12 £ 1,779 HEALTHHOSPITALHE7.0Hospital day cases - average cost per episode NHSPrimary Care Trust / Clinical Commissionin g Group Per episode £ 681 2011/12 £ 707 HEALTHHOSPITALHE8.0Hospital day care - average cost per regular attendance at hospital day care facilities NHSPrimary Care Trust / Clinical Commissionin g Group Per attendance £ 140 2011/12 £ 145 HEALTHHOSPITALHE9.0Ambulance services - average cost of call out, per incident NHSPrimary Care Trust / Clinical Commissionin g Group Per incident £ 214 2011/12 £ 222 HEALTHHOSPITALHE10.0Hospital outpatients - average cost per outpatient admission NHSPrimary Care Trust / Clinical Commissionin g Group Per admission £ 106 2011/12 £ 110

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