Future Funding & Commissioning Arrangements Michael Patterson: Support Solutions 23 rd November 2011

Key Questions Funding The Roles of Providers The Roles of Commissioners Devolution

The Big Picture Public expenditure crisis Public sector reform/retrenchment: different within devolved administrations The Big Society/Localism: and enhanced role for non-statutory players Changing commissioning arrangements

The Big Picture Public sector reform, especially in England Greater emphasis on prevention & social return on investment (SROI) Need for providers to collaborate & diversify Payment by results being emphasised Public funding shrinking, social investment developing

Funding Public expenditure crisis Public funding shrinking Social investment developing Housing Benefit:  DWP Review: still waiting…….  Universal Credit: “vulnerable” people? Supporting People:  Different significance in different places  On 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 Scotland Section 10 Adult Community Care Grant Scheme Section 10 Adult Community Care Grant Scheme The Change Fund: Elders service redesign, £70m during The Change Fund: Elders service redesign, £70m during

Funding Social 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) 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” 2011Healthy Lives, Healthy People

Funding The Social Investment Business (England) £5k-£7m in funding allocations  SEIF (Social Enterprise Investment Fund) SEIF (Social Enterprise Investment Fund)  Social Action Fund Social Action Fund  Communitybuilders Fund Communitybuilders Fund  The Adventure Capital Fund The Adventure Capital Fund  Futurebuilders England Fund Futurebuilders England Fund  Modernisation Fund Modernisation Fund Funding availability update

Funding Social Finance  Social Investment Bonds Social Investment Bonds The Volunteering Fund: national & local grants for health outcomes using volunteers The Volunteering Fund

Funding Supporting People Housing Benefit Social Investment Fund Northern Ireland

Funding Big Issue Invest: Loans of £50-£500k Big Issue Invest Triodos Bank Big Society Capital Group (Big Society Bank) Big Society Capital Group Social ISA Charity Bank Big Lottery Fund

Commissioning Focus on value, not on cost Social Return on Investment What are the cost benefits of prevention?  Calculate your cost benefit!  Cap Gemini Report Cap Gemini Report Strategic policy direction  Commissioners  Providers

Commissioning Strategic positioning for providers: Influence commissioning arrangements  Health & Wellbeing Boards (England)  Clinical Commissioning Groups (England)  Supporting People & Health & Social Care Collaborate  Consortia: 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 priorities  Prevention, diversion, inclusion, community benefit Increasing interest in “Payment by Results”  But who defines the outcomes? Joint Commissioning still the Holy Grail 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 agenda  Problems for Providers in being heard  But “bottom-up” solutions are required

Where Do We Need To Be? Remodelling & diversifying services Collaborating where necessary & desirable Influencing commissioning structures and thinking Reallocating costs Watching out for the DWP announcement on HB for supported & sheltered housing Diversifying funding streams

Where Do We Need To Be? Adjusting Business Plans Promoting preventative service models Developing cost benefit, social benefit & SROI arguments Lobbying, campaigning & networking

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