Agenda item

A Powerpoint presentation will be given at the meeting.

The Committee considered a report of the Director of Adults and Communities providing an overview of the work being undertaken to develop a capital investment plan for adult social care accommodation based support services and the potential implications for the Council.  A copy of the report marked ‘Agenda Item 9’ is filed with the minutes, along with a copy of the presentation that was given to the Committee.

It was noted that approval had been given at the recent Cabinet meeting for the Prior Intention Notice (PIN) to be published, and this had taken place on 24 October 2018.

The Committee confirmed that it was fully supportive of the proposals within the report, and agreed that an update would be provided on the PIN engagement exercise and progress on the capital investment plan and strategic business case at its meeting on 11 March 2019.  Arising from the discussion, the following points were raised:

i)             It was noted that there was still resistance by housing development companies to build lifetime homes, and there was an under development of retirement housing.  The market engagement exercise would provide the opportunity to test whether there was an appetite to develop more affordable lifetime homes.  It was felt that the situation would only change if developers realised the financial opportunities arising from this.

ii)            The Council was beginning to have more of an understanding around its requirements, and was having detailed discussions with district and borough councils around local planning.  Work had also been undertaken in relation to Section 106 contributions, as these had not traditionally been sought for adult social care provision.  Consideration was also being given to areas which did not have enough supported living/extra care accommodation and how this could be addressed and the market stimulated.  The work being undertaken was at the early stage of considering the impact of accommodation based care on people’s future care needs.

iii)           Developers were now building privately funded sheltered and extra care housing and were not asking the local authority for a contribution or a contract for providing care.  In such cases, the developer and landlord would set the eligibility criteria.  Where the Council was a contributor, a care and support contract would be agreed and the Council would establish the eligibility.  This would be targeted at those who would benefit most and also those who would have traditionally been placed into care.  The Council was keen for private developers to build these schemes in order to offer the most choice to service users.

iv)           At this stage, there was no assumption that the Council would directly deliver care services, but instead would invest in the building.  A significant proportion of the Council’s revenue costs for residential care related to accommodation costs.  It was noted that there could be an impact on the Council’s revenue position if it was not paying a high cost for accommodation and there was the potential to make an income through a joint venture partnership or lease agreement.

v)            There were possible revenue savings to adult social care through the use of accommodation based support services.  Market engagement with partners and stakeholders would take place to develop a range of viable options for consideration prior to any decisions being made.  However, any outcome would need to be based on a robust business case.

vi)           It was noted that a number of local authorities had established Local Housing Companies to build new homes for sale or rent.  Leicester City Council was pursuing this option and discussions were also taking place with some London Borough Councils to understand the implication of going down this route.

vii)         Reference was made to the fact that the NHS received funding to build homes, but that this was rarely used for this purpose.  The County Council was in discussion with the NHS to ensure that it was aware of the proposed direction of travel and inviting the NHS to participate.

RESOLVED:

(a)  That the report be noted;

(b)  That an update be provided to the Committee on the PIN engagement exercise and progress on the capital investment plan and strategic business case at its meeting on 11 March 2019.