Memorandum from Centrepoint (SPP 81)

 

 

Summary

· The Supporting People (SP) programme has greatly improved the support available for vulnerable groups by increasing resources for support services and raising awareness in local authorities of the needs of vulnerable groups.

· SP funding works most effectively where strong links are built between different SP services and with statutory services to form a coherent package of support.

· The SP programme could improve by creating multi local authority initiatives which address the needs of transient groups such as rough sleepers, for example through multi area agreements.

· The Quality Assurance Framework (QAF) has been effective at driving up standards by placing a stronger focus on quality and outcomes. However, a minority of local authorities have continued to use the old QAF while most are using the updated version, placing a high administrative burden on organisations operating in more than one local authority.

· The SP programme could also help providers give a better service by providing longer-term funding contracts and streamlining the reporting requirements on them.

· Centrepoint has not seen any evidence of the removal of the ring fence having a significant impact, and hopes that we as an organisation will be better placed than other organisations to survive any shake-ups given the importance many local authorities place on youth services.

· In order to remain viable, it will be important for providers to adapt their services to meet the changing demands of local authorities.

· But we believe the flexibility of the new system could create the opportunity for more prevention work and a more holistic view of service provision for vulnerable young people.

 

Introduction

1. Centrepoint is the leading national charity working with homeless young people aged 16 to 25. We are a registered social landlord, and a company limited by guarantee. Established almost 40 years ago, we work successfully to help homeless young people build firm foundations, turn their lives around and fulfil their potential. All our work is informed by our distinctive support and development approach which responds to young people in a holistic way, with direct services attending to the issues of housing and home, income, learning, and health.

 

2. Centrepoint receives Supporting People (SP) funding to provide accommodation-based support services for homeless young people in 19 local authorities across London and the North East. We welcome the Communities and Local Government Committee's inquiry into the SP programme, as we have seen first-hand the great benefits that the programme has brought to vulnerable young people in recent years, and therefore recognise how important it is that these advances are protected and built upon.

 

How far the SP programme is achieving its objectives

 

3. The 2007 strategy for the SP programme, Independence and Opportunity: Our Strategy for Supporting People, broadly defined the purpose of the SP programme as "ensuring that some of society's most vulnerable people receive help and support to live independently... and enabling vulnerable people to participate fully in the social and economic life of their communities."

 

4. Through its work with the Supporting People programme, Centrepoint has seen the great progress the programme has made in achieving these goals. Since its conception in 2003, the SP programme has helped to improve accountability of local authorities for the well-being of vulnerable people in their borough, and increased the resources available to support them. For example, the SP programme was important in reducing the numbers of 16 and 17 year olds in temporary accommodation by providing accommodation-based support services for this group of vulnerable young people.

 

5. The existence of the programme has also led to a greater understanding within local authorities of the challenges facing vulnerable people. Such understanding has been important in bringing about changes such as increased availability of schemes which help homeless people access private rented accommodation by helping them to afford rent deposits.

 

6. The Quality Assurance Framework (QAF) has led to improved services for service users on the ground, by providing a greater focus on quality and outcomes (see paragraphs 16-21 for more details about the QAF).

 

Joined up working

7. The local authorities where the SP programme has worked best are those which have built strong links between different services and organisations. There have been a number of very positive examples of how the SP programme has helped to create a cohesive pathway through different services. This cohesion has meant the changing needs of individual service users have been more effectively met, increasing the likelihood of them achieving positive outcomes in the longer term.

 

8. In Lewisham, for example, the SP programme funds Centrepoint to provide a short-stay (3 month) supported accommodation service and assessment centre. From here, they can then progress to longer term supported accommodation if required. Alongside these services, Lewisham also funds support services which give young people the help they need to live in independent accommodation, which can act as a useful stepping stone for young people leaving our more intensive support services. SP accommodation-based services in the borough also work closely with domestic violence teams, the drug and alcohol team, and the youth offending to ensure that the complex needs of young homeless people are met as effectively as possible.

 

9. The most successful SP services are also successfully integrated into mainstream services. For example, many Pathways teams have strong links with SP services, referring care leavers with relevant support needs to SP supported accommodation and floating support services. This allows individual young people to receive the help most relevant to them, irrelevant of which funding stream they may have originally come under.

 

10. In Camden, there have also been successful links made between SP and local statutory housing resources. The local authority's SP team has worked with service providers such as Centrepoint to provide better move-on options for vulnerable people leaving supported accommodation. The involvement of the SP team was very beneficial as they managed to broker the allocation of more statutory housing to SP service users.

 

Role of local authority as main referrer

11. Many local authorities have set up central referral services (such as SNAP in Lambeth and SHIP in Sutton) which look at all the referrals made to SP services, and allocate these referrals to the most appropriate provider. This generally works quite effectively, and means that each provider is meeting a local strategic need.

 

12. However, we do have concerns about the conflict of interest that arises from local authorities being the commissioners of SP services but, at the same time, increasingly providing 100% of referrals. This can lead to difficulties when clients are assessed by the provider as too high support for a particular service. The provider will often find it very difficult to convince the local authority that the person they are referring is not suited for the service. This means that providers can be asked to take unacceptably high levels of risk by accepting referrals that are of an unsuitably high support need.

 

Lack of cross-local authority initiatives

13. Although many local authorities are doing quite well at linking up services within their borough, more needs to be done to improve cross-local authority working. Many vulnerable groups, such as rough sleepers, are transient and cross many different local authority boundaries. As they are all operating with limited budgets, local authorities do not want to take responsibility for rough sleepers from different boroughs. This means that this group is often left without sufficient and appropriate provision. In this way, the SP programme is currently failing to achieve one of its objectives in the 2007 strategy to "ensure that access to services is not unnecessarily restricted through local connections or administrative boundaries".

 

14. Supporting People should therefore look into commissioning multi-borough projects where different local authorities work together effectively to ensure that the needs of these transient groups are met. Unless local authorities take responsibility for regional problems, services for transient groups such as organisations working with rough sleepers may not be sustainable. Communities and Local Government (CLG) could perhaps consider creating more incentives for local authorities to take on clients from outside the borough, for example, by saying that SP services in certain areas can only fill 80% of their spaces with people who have a local connection. Multi area agreements could be one mechanism to realise this.

 

15. Some local authorities have effectively set up cross border initiatives but unfortunately these remain the exception rather than the rule. Lewisham, for example, has been successful in creating links with other local authorities to help relocate people fleeing gang violence. But such initiatives are by no means widespread and more needs to be done to create cross-border solutions to regional and national problems.

 

The Quality Assurance Framework

16. Adhering closely to the QAF has helped Centrepoint to continuously improve its service offer. At an organisational level, the QAF has helped us to create a consistent approach to quality across all Centrepoint services and ensure that all young people we work with receive an excellent service. This has been achieved by the introduction of improved policy and procedures which are aligned with the standards in the QAF. For example, we have updated our Support and Development approach, which forms the basis of all our direct service work, in light of the guidelines set out in the QAF and the Common Assessment Framework.

 

17. The emphasis on service user consultation in the new QAF has had particularly positive effects on service provision. We have placed service user consultation at the heart of our work and routinely consult with the young people we work with about how our services are delivered. These consultations have helped us to improve our complaints procedure as well as our welcome handbook, which now includes more information about the local area and cultural activities following feedback from young people. We are currently in the process of creating our own consultation framework which will standardise the way in which we consult with young people and key external stakeholders.

 

18. Centrepoint's efforts to integrate the QAF standards into its policies and procedures have helped us achieve very positive ratings in SP reviews. In Jan-Dec 2008, 8% of Centrepoint services were rated level A, 46% were at a level B and 46% were at a level C, and for supplementary QAFs we achieved over 75% at level B.

 

19. Although we believe the QAF is very positive in principle, we do face a number of challenges arising from how different local authorities use the QAF. In February 2009, an updated QAF was introduced by CLG, but they did not stipulate that local authorities had to use the new version of the QAF, under the premise that it is still an optional tool. This has meant that while most local authorities are beginning to use the new version, a minority are still asking providers to use the old version. This puts great strain on organisations which operate in multiple local authorities as it means that we have to operate according to two different QAF frameworks. This increases bureaucracy, which runs in contrast to one of the key aims laid down in the 2007 strategy to "increase efficiency and reduce bureaucracy". Furthermore, given that the QAF is designed to be used as a national framework, it loses value if not all local authorities are working to the same sets of standards. It should therefore be made mandatory for all local authorities to use the single updated QAF.

 

20. In order to further the aim of reducing bureaucracy, the SP programme should consider working more closely with other government agencies to align the QAF with other regulatory frameworks such as the Audit Commission's Key Lines of Enquiry and the Tenant Services Authority standards. At present, organisations like Centrepoint are required to prove how they meet all three different sets of standards which is extremely labour and resource intensive. Supporting People funding includes very little money for overheads, and the funding does not cover the total amount which Centrepoint has to spend on reporting and monitoring required by the SP programme.

 

21. Centrepoint has noted some reduction in bureaucracy, but this has mainly been through less in-depth contract management on behalf of SP commissioners. For example, providers are now asked to do self-assessment rather than commissioners conducting regular site visits. Although we are not against these changes, they have not done much to help to reduce the reporting burden on providers. CLG should therefore look into ways in which SP reporting requirements on providers can be streamlined.

 

Commissioning arrangements

22. In the 2007 strategy, the Government committed to making "funding more sustainable and stable" by moving to three year funding. Centrepoint has not seen this materialise and on the whole still receives year-to-year contracts. However, we are hopeful that this will improve in the future, as we believe this short-term contract culture has been largely driven by commissioners wanting to see what effect the removal of the ring fence would have.

 

23. Over recent years there has been a significant shift from reporting on outcomes rather than inputs. Centrepoint believes this to be a broadly positive change as it focuses on what services can achieve. However, not all of our contracts are judged on a purely output basis. Some contracts are still linked to the number of workers employed, rather than on how the service is performing. We believe the outcome model should be adopted universally so that services have the flexibility to organise their services how best suits their organisation so that they can meet the outcome objectives most effectively.

 

 

Impact of the removal of the SP ring fence

 

24. Centrepoint views the removal of the SP ring fence as a potential point of concern and therefore believes that the effect of the removal of the ring fence should be monitored very closely, but we have thus far seen no evidence that it will have a significant effect on the provision of funding for our services.

 

25. Centrepoint believes it is less likely to be detrimentally affected by the removal of the ring fence than other homelessness organisations as young people's services are generally high in the priorities of local authorities. We are therefore confident that a substantial decrease in overall provision is unlikely. Services for 16 and 17 year olds in particular have become better resourced and better integrated after 16/17s were made a priority need group. But organisations working with less 'popular' groups may be more likely to see cuts in their services. We also have some concerns that non-specialist young people's providers such as large RSLs may be more likely to win new SP contracts due to the greater level of resources they can deploy to secure the contracts.

 

26. In addition to the removal of the ring fence, there has been concern about the value of SP contracts decreasing due to the reduction in the total SP budget being given to local authorities. Our recent figures suggest that this has not been a problem in the past year - the total value of our SP contracts (ignoring new or lost contracts) increased by £150,362 between 2008/9 and 2009/10 due to inflationary increases on our core contracts - but if the last few years are taken into account, we have experienced cuts in funding. Over the past five years of the SP programme, significant cuts in the grants being made have pushed many of our SP contracts into deficit.

 

27. We have also seen losses in the past year where contracts have been suspended or not been renewed, meaning we have had to reduce the number of services we provide. If new, lost or temporarily closed contracts due to refurbishment are taken into account we have seen a 6% or £483,000 decrease between 2008/9 and 2009/10, largely due to reconfiguration and refurbishment as part of the Places of Change programme. Whilst managing this change is a short-term issue, it does impact on our activities in this financial year.

 

Q - What needs to be done to ensure that the successes of the programme so far are not lost, or services cut, following the change?

 

28. In order to protect services, providers will need to demonstrate how their services meet PSA outcomes. This can be achieved through increasing links between their services and mainstream statutory services. If providers can help fulfill a statutory need, for example by catering for care leavers or 16/17 year olds, then they are more likely to survive any funding shake-ups.

 

29. Having said this, it is very important that SP services are not totally mainstreamed or there is a risk that the learnings of Supporting People commissioners may be lost. The targeted SP system meant that commissioners gained a very broad view of the needs of vulnerable people. We are concerned that if SP commissioning is too heavily mainstreamed into existing local authority departments, the learning gained may be lost, which may lead to the commissioning of unsustainable and unsuitable services. In particular, we are concerned that procurement departments will push for contracts to be awarded on the basis of price at the expense of quality. When dealing with vulnerable people, quality should never be compromised.

 

30. In order to remain viable, service providers will also need to adapt to the changing requirements of SP commissioners. In recent years, there has been a trend away from commissioning low-support accommodation (as many local authorities now have in-house floating support services) towards commissioning higher support assessment and short-stay accommodation to meet more pressing demands. Centrepoint is therefore looking at reconfiguring its services, placing a greater emphasis on high support services to meet the needs of local authority commissioners.

 

31. However, the trend away from SP commissioners funding low support services will inevitably lead to a gap in provision at that end of the market. Providers of high support services may therefore find it difficult to find lower support move-on options for clients progressing on from their services. To meet this need, Centrepoint is looking at buying up housing stock (separate from the SP programme) which will be linked with low level support services to give the young people we work with somewhere to progress on to.

 

32. Unfortunately, however, not all Registered Social Landlords (RSLs) will be able to embark on such initiatives as many are not in the same healthy financial position as Centrepoint and are already having to cope with big debts. The Government should therefore ensure that more resources are made available for the Homes and Communities Agency to fund the construction of move-on accommodation. Grant rates for RSLs should also be improved so there will be less risk for them to engage in such low support projects. It may also be helpful to procure capital developments along with support services so RSLs have the added incentive to develop. Otherwise lack of provision of low support services is likely to become an increasingly big problem.

 

Q - What opportunities does this change in the funding mechanism offer for innovation and improvement in the delivery of housing-related support services?

 

33. The main opportunity that the removal of the ring fence provides is for the commissioning of more holistic and joined up services. The flexibility that the area based grant system allows will mean that local authorities can use SP funding to create a more holistic package of support based on local need.

 

34. This may give organisations such as Centrepoint the opportunity to gain SP funding to provide a more holistic service for its clients. At present, Centrepoint's services are only judged on certain set outcome measures, but a more holistic view of SP funding could allow the wide variety of work that Centrepoint does to be recognised. This may allow Centrepoint to expand its non-housing related services, such as employment, drug and alcohol, and counselling services, so that we as an organisation can better meet the needs of the homeless young people we work with.

 

35. The removal of the ring fence could also provide the opportunity for the SP programme to do more prevention work, which would be incredibly valuable in addressing disadvantage and vulnerability in the long-term. If funding were directed towards schemes to prevent youth homelessness, re-offending and teenage pregnancy, it could help young people avoid becoming vulnerable adults by helping them build the necessary skills and resilience to effectively live independently in mainstream society. For example, Centrepoint believes that more should be done to intervene with at-risk families where there is a risk of the young person becoming homeless. Such schemes have had significant success in helping young people remain in the family, and for those that cannot stay at home, maintaining family relationships often helps young people to maintain their own tenancies more effectively as they can turn to their families for advice and support.

 

Conclusion

36. The Supporting People programme has greatly improved the amount of support available for vulnerable groups. SP funding works most effectively where strong links are built between different services and different local authorities to build a coherent package of support. Creating such joined up working should therefore be a key objective for all SP commissioners. The SP programme could also help providers give a better service by providing longer-term funding contracts and streamlining the reporting requirements on them.

 

37. It is too early to tell what impact the removal of the ring fence will have, but it will likely mean that providers will need to adapt their services to meet changing demands. Although Centrepoint has some concerns about the gaps this may leave in provision, we embrace the challenge of updating our services to meet shifting needs. Furthermore, we believe that the flexibility of the new system could create the opportunity for more prevention work and a more holistic view of service provision for vulnerable young people.

 

May 2009