Welfare Reform Bill


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Q 2The Chairman: Thank you very much indeed for that full and concise explanation. May we now hear from Oldham council?
Paul Davies: I agree with everything that has been said and will give a little more detail from our perspective. It is worth saying that Oldham council has taken something of a lead on personal budgets in adult social care, and that is important because there is a bit of a worrying point, if I am honest. About 1.75 million people across the country use adult social care or social care services in one form or another, but only 10,000 of them have a personal budget, which is a tiny part of the overall figure—really just a drop in the ocean.
That reflects the history of choice and control in adult social care. We have had direct payments since the 1990s, but progress under the direct payments legislation has been very slow and disappointing. I make that point because I think that it contains the seed of a warning for the Bill, and from my perspective there is no question but that the figure of 10,000 for people with personal budgets, over 2,000 of whom are in Oldham, is insufficient and represents an insufficient pace. There are several reasons for that, some of which relate to the difficulty that organisations—whether central bureaucracies or local authorities—have in reorganising their services to meet a new agenda.
My concern is similar to that expressed by my colleague: the provisions in the Bill could be more ambitious. Our experience in Oldham—and it is a strong experience on the numbers alone—is that division in funding streams is a sovereign recipe for ensuring that people who use services, or try to negotiate their way through them, do not manage to make any progress. It is extremely difficult, even when you have partially integrated funding streams, to deliver success for people, because the organisations that retain responsibility for that element of their funding keep their own mechanisms of control, their own routes and their own way of doing things. For people using the service and trying to take control of their lives and services, it is frankly a bit of a nightmare.
If people do not have that element of choice and control, we cannot see any other way by which to empower them to take control of their own lives, to become co-producers in the delivery of their own services and to contribute all the good things they have to offer as full citizens. Within the current adult social care system, none of that takes away from a local authority’s duty of care—that is not reduced in any sense by any of this.
I think that that is important, because it seems to me that there are two elements that need to be picked up: duty of care and affordability. Our experience in Oldham is that things are unaffordable if you do not reform your existing systems—that is what causes a problem. There is a remorseless logic to giving people choice, control and money but, in doing so, you have to unpick some of your existing arrangements. That is very difficult and perhaps explains why there are only 10,000 people with a personal budget.
There are some hard questions to be asked once you go down that route. When you do so, however, you get something of an explosion of creativity among the people who are using, choosing and controlling their own services. I will give you a generalised anecdote. If I tell somebody that I spend £40,000 a year on their care they say, “You must be joking. I could do considerably better than that for half the money.” To be honest, they are very often right.
There are some key lessons that we need to learn about the integration of funding streams. We need to ensure that there is a system lead—for want of a better description—for all aspects of a person’s life, whether it is employment, where they live or the care services that they receive, if they receive them. We will not be able to deliver this absolutely fantastic agenda of personalisation if we do not make things workable for people. You cannot expect people who have been out of employment for a very long time and may have lost their skills, or may never have been in employment or had any form of meaningful day time activity, to exercise choice and control in their own lives if you do not make the system simple and put in place guidance and support. If that is not delivered by the Bill, the system will fail and not deliver what is required.
The Chairman: Thank you very much for that very helpful evidence.
Q 3Mr. Mark Harper (Forest of Dean) (Con): Both of you had a consistent theme of making sure that different funding streams were integrated and available to individuals. The Bill currently provides for funding streams from only the Department for Work and Pensions to be included, and as Liz Sayce said, that does not include the adult social care funding. The Department has said, in written answers, that it is going to consult on how its own funding stream should be included in their pilot programmes and whether the disabled facilities grant and adult social care should be included. I got the sense, from your evidence, that you very much think that it should and I want to get a sense from you of how critical that you both think that is.
We are very supportive of what the Government are doing across Government about individual budgets, but there is a danger that different Departments are setting up their own. We already have adult social care: this one from the Department for Work and Pensions; the Department of Health is looking at personal budgets for health care; and the Department for Children, Schools and Families is looking at piloting individual budgets for disabled children. It seems to me that there is a danger that we are just going to replicate different Departments and different funding streams. Individuals will not actually have control and will have to battle with a number of Departments and a number of funding streams with different rules, and will not be able to bring them together. I would like a sense for the Committee, before we debate the Bill, about how critical it is to grapple all those funding streams together.
Liz Sayce: It is very important for two reasons. First, individuals talk to us about the fragmentation of the system and how difficult it is to navigate through it. People want to have control through a simple route to access either the pot of money or the right for that money to be used on their behalf across the different funding streams. Quite often the Departmental boundaries do not make intuitive sense to the individuals. There is a lot of overlap in what we call social care or health care and support for employment. Some of the things you need for social care might very well help you in your journey into employment because it might be about having a PA to support you. That PA helps you to get up and get out of the house but can also help you to travel to work. These things are all interlinked. Having to navigate through multiple gateways is a complexity that people would prefer to do without, to put it mildly.
The other thing is that there is a risk of a poor use of resources if you have multiple assessments and multiple funding schemes. Our sense is that the right to control with integrated funding streams, where possible, will lead to a better use of resources because the individual in their self-assessment will be able to say what they most need such as, as Paul was saying, “I could do better if I knew how much money there was across the piece.” It is critical. Obviously there are real complexities in delivering it. We certainly intend at RADAR to seek expert advice on potential amendments to this part of the Bill to see whether some kind of requirement to pool budgets might work better than simply having an exemption, and what is obviously a very genuine intention to align the piloting where possible and to consult. There is a lot of agreement that people want to move towards better alignment. It is a question of how and at what pace to do it. We do not want that pace to be too slow.
Q 4Meg Munn (Sheffield, Heeley) (Lab/Co-op): I share the frustration about how slow the process is. I worked in social services in the ’90s and remember some early attempts to do precisely the kind of things that Ms Sayce was talking about, and people’s fear about what that would mean. It seems to me that, however many years on, we should be well past that, but we are not. How much do you feel that what is holding people back is about what is in the legislation, and that this is an opportunity to do something about that? How much is about the structural problems which are out there and will continue to exist, regardless of whether or not we change the legislation?
Where we struggled was in integrating Access to Work funding. Colleagues in the DWP worked their socks off to make it work. They really tried very hard. They were fantastic, but they just could not make it work around the rules and regulations. Nor could we. That was a real problem for us and it remains something of a separate stream that we have to work to. We had a similar frustration with the independent living fund. I know that that has been much discussed. There are basically two completely different funding schemes with mutually exclusive assessment systems. None the less, we managed to get some success in integrating those. In terms of economy of effort, which is what we are looking for here, a lot of hard work was required to integrate those funding streams that were not naturally within the control of one organisation.
Q 5Meg Munn: So the issue is about the detail, the requirements, the criteria and so on that will be in place, because inevitably you have to limit who is entitled to things and how it is done, as opposed to, in your case, the unwillingness of one of the organisations to take part.
Paul Davies: I would not say that it was unwillingness; it was simply inability.
Q 6Meg Munn: If you look at child care legislation on meeting the needs of a child, other organisations, beyond the local authority, are required to assist in doing that. I wondered whether, along with changing criteria around spending, one mechanism might be permissive criteria within the legislation.
Paul Davies: My gut feeing is that permissive does not do it. It requires something more direct. For that reason, I am also concerned about the unreasonable financial burden, because, I suspect, we are potentially building into this a system of gateways that does not need to be there, through which those organisations that are willing and able will pass, and those that are either unwilling or unable will not. I think that it needs to be something more than permissive. To deliver something that works, my feeing is that to bring the full fire—for want of a better description—of all these different organisations wrapped around the individual, it needs to be more directive.
There is good work outside of Government; organisations such as In Control are looking at how different funding streams can be integrated through a simple resource allocation system. That is the key; it is about the individual knowing how much money they have to meet their needs, having a set of defined outcomes that they have to work towards and having a vehicle for delivering them. In our experience, where one is able to integrate those funding streams into that single delivery vehicle, wrapped around the individual, with that individual having choice and control, it works. What does not work is a load of bureaucratic jiggery-pokery at the back as organisations try to sort things out, and not always seamlessly. That is a not the way to ensure that we get people into employment, meaningful daytime activity or a system of care that suits them.
Q 7John Howell (Henley) (Con): May I pick up on a couple of points relating to the level of support? One thing that concerns me is that in rural constituencies, which many of us represent, the choice will not be there and the cost will be greater, so budgets will not go as far as they ought to. Have you picked up on that concern?
Paul Davies: Oldham sees itself as a country town really. A large part of our borough is in a rural area in the national park, but we also have a densely inhabited section close to Manchester, so we are a mix. Your concerns are entirely justified, but in the case of adult social care it is the responsibility of the director of adult social services to ensure security and sufficiency of supply. None of that takes away some of the things that we have to do. It is not simply about giving people the money unconditionally and saying, “There you are, get on with it. That’s absolutely fine,” and people discovering that there is nothing to use the money on or that it does not work for them.
There is work behind all this that, in my case, a local government agency is paid to do, which is ensure that supply is available and that there is a sufficient market, if that is required, or sufficient support, if that is required, to ensure that people’s needs can be met. That is part of the needs assessment that needs to take place between organisations.
At present, needs assessment, certainly in adult social care, has centred on the relationship between health and social care, but it needs to be broader than that because nobody’s biology is their biography. It is not just about health or anything else; it is, exactly as my colleague has said, about where they live, what employment is available and even, in the case of a very large local authority, what transport is available, as well as what role the whole council—in my case—is playing in concert with, for example, voluntary sector partners to ensure that there is sufficient supply. None of this takes away that responsibility to make sure that those things are in place to support the individual.
Q 8John Howell: I understand the point you are making about the duty and how you intend to develop that. Nevertheless, it still prompts the practical question of how it is possible in a rural area to encourage new providers to come in and deliver the choice that people in more urban areas would expect.
Paul Davies: In my experience, there is a market. We were told very early on in Oldham that we would lose. It was a great concern among our providers, such as those offering domiciliary care, that the atomisation of the market, due to personal budgets coming in, would mean no work for anybody and people going out of business—it was all going to be terrible. In the first year, we more than doubled the number of providers coming to do business with us. The reason for that is simple.
I talked before about something of an explosion of creativity. If the scope of one’s imagination is the existing traditional system of support, you are quite right that there are limitations within that, because it is the way that organisations do business and have done in the adult social care base since the early 1990s, when community care came in. But actually, the support that people require is often non-traditional, things that I could not possibly imagine. I could never had made up the things that people come back to us to say that they need support with. Often to my great surprise, though less so now, the solutions that people reach to meet their own needs are so far away from the traditional but so effective that the issue of traditional sources of supply is minimised.
I guess that the point I am trying to make is that until you begin to give people the ability to do this and to control and deploy their own resources in a way that they feel comfortable with and that meets their needs, you cannot begin to guess what solutions they will come up with. Some of those solutions are within their neighbourhoods or often within their own families—ones that previously would not have been thought of. They are very unconventional solutions.
It might help if I give you some facts and figures. Our experience in Oldham is that about 50 per cent. of the people to whom we give a personal budget say, “Thank you. I do not want the money. I am happy either for you to control that or for me to have some element of control over how that money is spent. You crack on and deliver my services.” Another 25 per cent. say, “Thank you. I will take all the money. I will plan, organise and commission my own care and services, and deliver those. No problem.” The remaining 25 per cent. would say, “Thank you. We will take part of our mission critical services as a delivered service, but some element of it as services we will control ourselves.”
 
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