Agenda item

To note the situation and the relevant risks regarding the budgets of the Council and its departments, consider the decisions for the Cabinet and comment as necessary.

DECISION:

 

·       To accept the report and note the situation and relevant risks in the context of the Council's budgets and its departments

·       Agree with the recommendations to Cabinet:

 

Note:

·       Work commissioned by the Chief Executive to gain a better understanding of overspend in the Adults, Health and Well-being Department - a request for the Cabinet to challenge the timetable for this work – assurance needed that this work is in place in order to set the budget

·       Work commissioned by the Chief Executive to clarify the detailed situation in Children's care, to gain a better understanding of the issues and a clear programme of response.

– need to submit a more detailed analysis of the work to the Committee

·       Request for information on how Gwynedd's financial projections compare with other Councils

·       Information on higher income from the death bereavement service, lack of parking income and per capita funding details to be shared directly with Councillor ⁠Angela Russell

 

Submitted - a report by the Cabinet Member for Finance, detailing the latest review of the Council's revenue budget for 2024/25, and the projections towards the end of the financial year.  The Committee was asked to scrutinise the information and offer comments before submitting the report for the Cabinet's approval on 21 January 2025.

 

Reference was made to a summary of the final position of all departments, reporting, following the end of November review of overspending, that 83% of it was in the adults and children care field, but the current projections suggested that five of the departments would overspend by the end of the year, with substantial overspending in the Adults, Health and Well-being Department, Children and Families Department, Highways, Engineering and YGC Department and the Environment Department.

 

During the ensuing discussion, the following observations were made by Members:

·        Work commissioned by the Chief Executive to gain a better understanding of overspends in the Adults, Health and Well-being Department – what was the timeline for this work and when would the information be shared?

·        Work commissioned by the Chief Executive to clarify the detail of the picture in the children care field - the information would need to be submitted to the Committee

·        That there was more demand for services - was this a case of insufficient investment, or overspending? Councils across Wales were in the same position. How did Gwynedd compare with other Councils?

·        Although we were fortunate of the Council's reserves - this could not sustain the situation - there was a responsibility on Heads of Department to 'live within' the budget.

·        Weaknesses in domiciliary care administration - had the situation improved?

·        Reference to a mid-year spending break - was this fair if someone needed a service?

·        Were there long-term plans in the Council's income fields, rather than short-term/medium-term plans? Was the income threshold too high, and consequently highlighted that the service was ineffective on paper? How much less, e.g., was the parking income in Gwynedd?

·        Lack of workers⁠ - did 16 hour contracts stagnate the situation? When considering the working conditions of carers in general, had the reintroduction of inflated pay been considered?

·       Gwynedd census figures - number of deaths was high - what was the impact of this? - request for details re: money per head and higher income of the bereavement/deaths service

·        Was there input from the Health Board to children's out-of-county placements?

 

Although work had already been commissioned by the Chief Executive to look at the financial position of the Adults, Health and Well-being Department, Dylan Owen (Statutory Director for Social Services) and Aled Davies (Head of Adults, Health and Well-being Department) were invited to the meeting to provide the context and a more comprehensive explanation of the Department's budgetary headings, detailing the Department's challenging financial position.

 

In response to a comment regarding the input of the health service to out-of-county placements, it was noted that this was not a health issue, but rather a lack of provision of homes / accommodation to children in need. It was explained that there was an inadequate provision in Gwynedd, and therefore secure placements had to be sought outside the County. ⁠It was reiterated that the national demand for residential placements was high and that the current supply did not meet the demand - the shortage also led to a situation of having to use unregistered properties (such as caravans), which led to buying carers (agency) to look after the child(ren), which consequently maximised the costs.

 

It was reported that developing a residential provision through the Small Group Homes Scheme was a priority in the 2023-28 Council Plan. It was explained that the Council's expenditure on out-of-county residential placements was increasing, due to six exceptional placements this year.  Developing the Small Group Homes Scheme would be an opportunity to save costs, whilst ensuring that children in residential placements could stay local, be a part of their community and be educated in the County.

 

In the context of Nursing Homes, it was explained that with the emergence of the Penyberth development, the Council would be able to provide nursing care in the County - a service that was currently provided by independent care providers or the third sector only. It was reiterated that these providers offered private care, and were profit-driven, and therefore, there was a need to try and reach an agreement on costs in advance. Penyberth would be a means to remodel the care sector in the County.

 

Attention was drawn to the overspending objective for 2024/25, and assurances were given that Gwynedd's position was not unique - this picture was commonplace across the United Kingdom.  It was reiterated that Social Services was one of the County's main industries, and that it employed many people and invested heavily in the services. Reference was made to the use of 'Care Cubed'; a not-for-profit company which assisted the service to understand fees and obtain the best value for money - its use had already led to an underspend in some fields. According to the Homecare Association, the expected standard cost for domiciliary care was £34 per hour, and that Cyngor Gwynedd were paying slightly less than this, but the demand for care in the County was huge. It was noted that ongoing work was being done to ensure a balance, offering support for residents to maintain themselves and live independently.

 

Despite the details in the report, it was accepted that the information did not adequately highlight the expenditure, and therefore it was agreed to work with the Finance Unit to seek a clearer picture. 

 

In addition, attention was drawn to the following matters:

·        Learning Disabilities - costs varied with a presentation of new cases

·        That agency staff costs were substantial, but the situation was improving

·        That the recruitment of casual staff was challenging - over-reliance on a restricted number. Concern about staff sickness - work was being done to support staff well-being.

·        A number of developments and efforts made to 'sell' a career pack in the Care field. With the launch of the Care Academy, the hope was to attract more workers. Gwenno Williams (Marketing and Care Careers Development Officer) had been acknowledged on the national stage for her contribution to this work.

·        Savings - the situation was being reviewed regularly - new savings schemes with substantial amounts submitted

·        The Department's Bad Debts Provision was substantial - the budget was insufficient.

·        Welcomed the Penyberth development - the provision aided the care situation in the County in the long term.

 

Gratitude was expressed for the detailed explanation for the Department's substantial challenges.

 

In response to a question regarding Continuing Health Care and the blurred line between the responsibilities of Social Services and the Health Board, it was noted that the situation was complicated. Having considered an individual's needs (and completing a Decision Support Form), it would be required to decide how to address the health needs or / and the care needs. It was noted that decisions were being overturned regularly, which added to the service's challenges - a situation had arisen where there was a need to consider employing a person to deal with this work only.

 

In response to a comment that there had been slippage in four schemes worth £1.2 in the 2024/25 budget and whether there was any intention to deliver these savings, it was noted that the Department would not present savings, unless they were confident that they would deliver them. It was reiterated that costs were increasing and that it was difficult to deliver within the time-frame - realistically it was not easy to deliver within a short time, considering the work that needed to be done to change a service, e.g. timetable for the public consultation.  The priority was to maintain and provide a service for the residents of the County, but the Service was also unable to provide a service to many - there was no budget for being unable to provide, and this needed to be considered in the future.

 

RESOLVED:

·        To accept the report and note the situation and relevant risks in the context of the Council's budgets and its departments

·        Agree with the recommendations to Cabinet:

·        To congratulate Gwenno Williams (Marketing and Care Careers Development Officer) for her contribution to the work of recruiting staff to the care field and for winning the Outstanding Personal Contribution award at the Careers Wales awards.  

 

Note:

·        Work commissioned by the Chief Executive to gain a better understanding of overspends in the Adults, Health and Well-being Department – a request for the Cabinet to challenge the timetable for this work – assurance needed that this work is in place in order to set the budget.

·        Work commissioned by the Chief Executive to clarify the detail of the picture in Children's care, to gain a better understanding of the issues and a clear programme of response - need to submit a more detailed analysis of the work to the Committee.

·        Request for information on how Gwynedd's financial projections compare with other Councils.

·        Information on higher income from the death bereavement service, lack of parking income and per capita funding details to be shared directly with Cllr ⁠Angela Russell.