Future Funding & Commissioning Arrangements

Michael Patterson:

Support Solutions

23rd November 2011

Key Questions

FundingThe Roles of ProvidersThe Roles of CommissionersDevolution

The Big PicturePublic expenditure crisisPublic sector reform/retrenchment:

different within devolved administrationsThe Big Society/Localism: and enhanced

role for non-statutory playersChanging commissioning arrangements

The Big PicturePublic sector reform, especially in EnglandGreater emphasis on prevention & social

return on investment (SROI)Need for providers to collaborate & diversifyPayment by results being emphasisedPublic funding shrinking, social investment

developing

FundingPublic expenditure crisisPublic funding shrinkingSocial investment developingHousing Benefit:

DWP Review: still waiting…….Universal Credit: “vulnerable” people?

Supporting People:Different significance in different placesOn the wane in most areas (but not in Wales)

Funding

Public money will form a smaller percentage of total revenue for the Sector

Providers should look for a more diverse range of revenue sources

Some revenue will still be paid through competitive tenders

Funding

ScotlandSection 10 Adult Community Care Grant S

chemeThe Change Fund: Elders service redesig

n, £70m during 2011-12

FundingSocial Investment Scotland

Social Investment Scotland Loan Fund (£10-£250k over 10 years)

Scottish Investment Fund (£30m in total: £100-£500k)

Social Entrepreneurs Fund (£1m)Third Sector Enterprise Fund (£12m in

total: £25-£100k grants)

Funding

Supporting People to fund collaboration, co-production & co-design of services across housing, homelessness, health and social care and community safety

Child & Families Organisation Grant (CFOG)

Welsh Social Enterprise Coalition

Funding

Health Challenge Wales (health, wellbeing & prevention)

Local Mental Health Grant Scheme (LMHGS)

Support for People with Disabilities Grant Scheme (SPD)

Funding

Clinical Commissioning Money£80bn: some must be for prevention

£2bn more for social care by 2014 Part of removing the barriers between health

and social care funding & commissioning

Public Health Grant: “Healthy Lives, Healthy People” 2011

Funding

The Social Investment Business (England)£5k-£7m in funding allocations

SEIF (Social Enterprise Investment Fund)Social Action FundCommunitybuilders FundThe Adventure Capital FundFuturebuilders England FundModernisation Fund

Funding availability update

FundingSocial Finance

Social Investment Bonds

The Volunteering Fund: national & local grants for health outcomes using volunteers

Funding

Supporting PeopleHousing BenefitSocial Investment Fund Northern Ireland

FundingBig Issue Invest: Loans of £50-£500kTriodos BankBig Society Capital Group (Big Society

Bank)Social ISACharity BankBig Lottery Fund

Commissioning

Focus on value, not on costSocial Return on InvestmentWhat are the cost benefits of prevention?

Calculate your cost benefit!Cap Gemini Report

Strategic policy directionCommissionersProviders

Commissioning

Strategic positioning for providers:Influence commissioning arrangements

Health & Wellbeing Boards (England)Clinical Commissioning Groups (England)Supporting People & Health & Social Care

CollaborateConsortia: share costs & specialisms“Hub & Spoke” arrangements

Commissioning

The role of the Sector is meant to be widening

There is a need for diversification of services

A wider set of commissioning relationships

What is strategically relevant?Look at local prioritiesPrevention, diversion, inclusion, community

benefit

Increasing interest in “Payment by Results”But who defines the outcomes?

Joint Commissioning still the Holy Grail

Commissioning

Commissioning

Ironically, public sector reform as a consequence of financial retrenchment may lead to this

A state of flux exists whilst the Statutory Sector adjusts to the Government agendaProblems for Providers in being heardBut “bottom-up” solutions are required

Where Do We Need To Be?

Remodelling & diversifying servicesCollaborating where necessary & desirableInfluencing commissioning structures and

thinkingReallocating costsWatching out for the DWP announcement on

HB for supported & sheltered housingDiversifying funding streams

Where Do We Need To Be?

Adjusting Business PlansPromoting preventative service modelsDeveloping cost benefit, social benefit &

SROI argumentsLobbying, campaigning & networking

Our Contact Details

Fairgate House

205 Kings Road

Birmingham B11 2AA

0121 707 7766/8881

www.supportsolutions.co.uk

info@supportsolutions.co.ukTwitter @suppsolutions www.facebook.com/SupportSolutionsLtd?sk=wall

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