23 July 2004
Local authorities' role as providers of social care could be marginalised under proposals being considered by social services minister Stephen Ladyman.
In an interview with Public Finance, the minister said he expected 'a massive explosion in direct payments provision, or in something like direct payments'. These allow service users to pay for their own care from councils' care budgets, and could lead to an increase in the use of small, independent care providers.
A personal care account might be used for people unable or unwilling to purchase services themselves. A care manager, employed either by a local authority or a voluntary group, would purchase services in consultation with the client.
Of the £9bn spent by local authorities on social care, 'a very large part of that could ultimately be controlled through direct payments', said the minister. At present, direct payments account for only a small proportion.
The expected growth should stimulate a more flexible and wider range of services, but both the private and voluntary sectors had so far failed to respond to the opportunity, Ladyman complained.
The minister said the future role of local authorities was under consultation, to decide whether councils should continue to provide care directly or be required to do so only through an arm's-length body.
He confirmed that there was 'a possibility' that only the best-performing councils would be permitted to provide care directly.
Asked if poorly performing local authorities might lose all their social services responsibilities other than strategic planning, the minister responded: 'That's clearly an option we might want to develop.'
Ladyman indicated that this could even mean failing councils' social workers being employed by outside organisations.
Many voluntary sector organisations as well as local authorities were criticised by Ladyman for providing unacceptably poor services. He said that while many voluntary sector services were excellent, 'with some the best you can say about them is that they are cheap and cost-effective'.
PFjul2004
