Derbyshire council says adult and children’s care are still among its greatest financial challenges

Conservative-controlled Derbyshire County Council’s Cabinet approved a report at a meeting on July 10 which revealed how the council has reduced its forecast revenue overspend by about £24.7m which is more than half the original deficit forecast for 2023-24 of £46.4m that was first reported last September.

But Deputy Leader, Cllr Simon Spencer, who is also the Cabinet Member for Corporate Services and Budget, highlighted how this budget has been affected by an increasing demand for services, particularly in adult social care and children’s services and safeguarding, which he says is an on-going challenge that requires intervention from the new Labour Government.

Cllr Spencer told the meeting: “I believe – and we will continue this momentum, prior to the General Election and after – we need to declare the issue of children’s costs and children’s placements and we require Government intervention.”

Both Cllr Spencer and the council leader, Cllr Barry Lewis, have stated the Government needs to make a potential change in legislation with a cap on what the council regards as crippling fees and costs from private childcare providers which was further echoed at the latest Cabinet meeting by Cllr Spencer.

With adult social care, the report states an increase in demand with hospital discharges and because there is an insufficient supply of home care and ‘reablement’ services this has driven increased short-term placements into residential homes while people await the availability of care at home. It added that consequently expenditure on independent sector placements has increased further in excess of the budget.

The overspend on Children’s Services and Safeguarding and Education is mainly due to continued high demand for placements for children who are in care or unable to remain at home and due to the demand for safeguarding services, according to the report.

It also states there are significant pressures on Education budgets relating to Home to School Transport and School and Learning Services.

Expenditure on placements for children in care or alternatives to care has also continued to rise due primarily to an increase in the cost of placements, according to the council.

The report also stated the number of children requiring support has grown and there are a greater number of children in arrangements which are alternatives to care, such as Special Guardianship Orders, many of which require long-term financial support.

Cllr Lewis, who told the meeting he was still concerned about the challenges faced by adult social care and children’s services, said : “We have a new Government and we look forward to working with them and engaging with them and highlighting the difficulties that not only this authority faces but that others across the country face.”

The council claims its forecast revenue overspend has also been down to external forces including a higher than anticipated inflation, higher fuel, energy and material costs, an increasing demand for services, and nationally-set pay awards some of which are still affecting the authority’s budget.

However, Cllr Spencer told the meeting: “I am pleased to bring this report to Cabinet. I think it reflects the hard work and effort the council has put in over the last nine months highlighting the deficits we have faced and the achievements we have made.”

The 2023-24 Performance Report for April 2023 to March 2024 stated good progress has been made in delivering the Council Plan with 82per cent of the 45 ‘deliverables’ in the plan showing ‘Good’ or ‘Strong’ progress, 16per cent have been rated as ‘Requiring Review’, and 2per cent have been rated as ‘Requiring Action’.

Following the implementation of cost-saving plans originally announced in September, Cllr Spencer said: “This report highlights the challenges we face nine months out and also highlights the efforts by the organisations and the efforts that have been made and the achievements that have come off the back of them.

“And every part of the organisation has played their part in bringing this figure back to where it is now.”

Some areas which the council feels need reviewing to reduce overspending include refreshing and implementing its libraries strategy, how the council delivers home to school transport for children with special educational needs, and the number of people with a learning disability or autism who can be a moved from residential care to independent supported living.

The report states how strict cost-control measures, additional income and grant funding, departmental savings and use of reserves has resulted in an improvement of around £24.7m on the overspend sum originally forecast and that a final end-of-year revenue overspend of around £21.7m for 2023/24 is to be met from reserves.

Derbyshire County Council originally imposed cost-control measures last September in an attempt to balance the 2023-24 estimated budget deficit.

These included: Freezing recruitment except for essential jobs, and reducing the use of agency staff; Reducing overtime: Reducing non-essential travel and training: Reducing print, IT equipment and stationery spending; Only carrying out health and safety repairs on properties; And where expenditure was non-essential, ceasing or delaying procurement for supplies and services and postponing projects still in the planning stage.

Cllr Spencer told the recent Cabinet meeting: “It’s a success story in many respects to bring down this figure in the last nine months.

“There is more to do. It’s going to be challenging in the next 12 months and I would also like to highlight the commitment of those in the organisation.”

The council also laid down further hard-hitting saving proposals, in February, to balance an estimated deficit of around £40m for the current 2024-25 financial year some of which have already been agreed and others are still subject to consultation.

As part of the 2024/25 budget proposals, the council has already decided to close ten children’s centres with the ‘disestablishment’ of its Early Help Service with the introduction of a new Family Help service.

It is also considering the future of eleven residential homes and eight day opportunity services for elderly people with possible care home closures and possible day centre closures.

The council has also been considering redesigning how it provides Day Opportunity centres and Short Break residential units for adults with learning disabilities and or autism which some fear could result in some support services and centres being discontinued and closed.

In addition, the council is introducing cost-saving efficiency changes at its nine household waste recycling centres, is planning to redevelop its headquarters at County Hall, in Matlock, into a hotel, homes and offices, and it has not ruled out the possibility of redundancies.

The council has stated that like many authorities it has been struggling due to reduced Government funding, the financial impact from the Covid-19 pandemic, high inflation rates, rising costs, the cost of living crisis, and a growing demand on services.

Key areas in the Council Plan include: Safeguarding children; Good or better schools; Learning disabilities; An integrated care system; Health and well-being advice; The bus service improvement plan; Managing the council’s buildings/property assets; The carbon reduction plan; The digital strategy; The local nature recovery strategy; And thriving communities.

The budget saving proposals which were identified for 2024-25 include: Redesigning five short stay residential homes and four day centres for people with learning disabilities; Redesigning 16 council elderly residential care homes and ten day care centres; Redesigning council care arrangements within extra care settings for older people; Reviewing the delivery of children’s centres and reviewing the children’s services Early Help service; Changing policy for post-16 home to school transport; And reviewing residential short-break and support services for disabled children.

Others include: Restricting or charging for waste disposal of tyres and asbestos and generating income by allowing small businesses to use centres for a fee; Modernising the way the council delivers its library and heritage services; Reviewing the usage and options for Derbyshire County Council’s County Hall offices; And ceasing the production of the Derbyshire Now magazine and reducing the council’s countryside grounds maintenance budget.