Agenda item

To offer options with regards the financial position of Tendring Careline and the future viability of the service.

RESOLVED that Cabinet - 

a)     agrees to the continuation of a Tendring Careline Service for residents;

b)     adopts Options 4 as the basis for the longer term approach to deliver a viable and sustainable Careline Service in the long term;

c)      requests Officers to take steps to maximise marketing opportunities to increase the customer base in an orderly way through 2022/23 and 2023/24 in working towards the figures highlighted in Option 4 within Appendix A to the Portfolio Holder’s report;

d)     approves the utilisation of the existing Careline Reserve of £221k to underwrite the financial risks associated with a), b) and c) above; and

e)     requires that detailed updates be presented to Cabinet as part of future financial performance and budget setting reports later in the year in order to provide an ongoing review.

Cabinet considered a report of the Housing Portfolio Holder (A.4) which offered options with regards to the financial position of Tendring Careline and the future viability of the service.

Cabinet was reminded that, in order for Tendring Careline to retain its accreditation to the TEC Services Association (TSA – the national body of all Carelines across the UK) the service must match a number of key performance indicators (KPIs). Those KPIs could only be met if the service had enough trained staff to answer the incoming calls from service users and the responders to go out if necessary.

Members recalled that, on 19 April 2022, the contract for Tendring Careline to deliver out-of-hours call monitoring services to Provide CIC had been terminated. Although this meant that Tendring Careline could employ fewer staff, the lost income would also impact the financial viability of the service.

Cabinet was aware that a recent internal audit of Careline had also highlighted that the service needed improvement in a number of areas. The audit had concluded that:

‘it would be timely to review the strategic direction of the service’, and that ‘Whatever options are chosen, one of the first targets will be renewed accreditation with the industry standards, TSA.’

It was reported that, on 25 April 2022, the Audit Committee had sought assurances from the relevant Head of Service that an improvement plan was in place. That improvement plan formed the basis of the recommendations contained within the Portfolio Holder’s report which aimed to stabilise and build confidence in the service; ensure that the TSA accreditation was maintained; and concentrated on a measured, sustainable growth for the service in order to remain viable.

The current budget for 2022/23, which had been set before it was known that the Provide CIC contract income would be lost, showed a net cost to the authority of £501,800.

There were four options set out in the Portfolio Holder’s report for Cabinet to consider.

Option 1 (This was to offer a baseline figure only and for comparison against the other options)

If the Council no longer offered Careline but did maintain an out-of-hours and CCTV service for Tendring residents, Careline service users would be given details of other service providers that they could transfer to and all external contracts would be given 3 months’ notice. There was a reputational risk to this option as the Council had delivered Careline since 1987 and an Equality Impact Assessment had shown that such a decision would have the greatest impact on the elderly and vulnerable residents of Tendring, hence this option was not considered viable. This option showed a net cost to the authority of £608,000 as the loss of income from Careline was greater than the budgeted cost of staff.

Option 2

The Council maintained the staffing required to meet demand. This option showed the greatest net cost to the Authority, i.e. £764,724 as the combined cost of running the service was greater than the projected income.

Option 3

The Council maintained the staffing required to meet demand and increased its fees immediately in order to ensure the service broke even. If this option were however, to be delayed until the fee setting for financial year 2024/25 (see option 4 below) then, in the interim, any shortfall would be mitigated by a supplement from the Careline reserves. There was also the possibility of external funding from health partners for a new responsive welfare service, which would be delivered by Careline.

TendringCareline currently charged existing analogue service users £23.82 per month and new digital service users £30.55 per month (this included the cost of the SIM card and the equipment, hence the difference in price). In order to reach breakeven using option 3 alone, the monthly fees for private pay service users would need to increase by £5.68 per month (24% and 19% respectively). It was believed that the local market could support this increase as Colchester Helpline (this Council’s nearest alternative provider) currently charged in excess of £45 per month for an analogue service. It was considered that any fee increase normally resulted in a very small number of service users ending their contract however, if this was purely down to the ability to afford the service, then this Council would be able to recommend the new Essex County Council service whereby the resident could be means tested and might then be able to access a free or part funded service.

It was pointed out that this Council had been delivering Tendring Careline since 1987 and was considered to be a trusted provider of this service. The TSA accreditation showed that the service was safe and reliable, which was the primary consideration for local people. Colchester Helpline were not accredited and Tendring residents were unlikely to have heard of Provide CIC.

However, it was noted that the Council’s fees had already increased by 2% from 1st May 2022 and previously in August 2021. This option showed a net cost to the Authority of £611,636.

Option 4

The Council maintained the staffing required and increased the number of fee paying service users through an active marketing campaign, thus increasing income. It was noted however that there would be a delay between advertising and new income generation; all of those new service users would not join from day one. In mitigation of the risk of any year end shortfall a supplement could be called upon from Careline reserves, and there was also the possibility of new external funding from health partners for a pro-active welfare service for Tendring residents which could be delivered within existing staff resources. It was anticipated that by the end of 2023, when the service entered the normal fee setting cycle for 2024/25, the success of the marketing campaign would be understood, and accordingly the fees for the following year could be set to ensure a breakeven. It was anticipated that in this case the necessary rise in fees would be less than within option 3. Option 4 showed a net cost to the Authority of £612,974.

Cabinet was informed that the preferred course of action would be Option 4: an orderly and sustainable growth of the number of service users to increase income. Initially, the service would concentrate on the recruitment and training of enough staff to ensure a safe service was delivered to customers and that the TSA Accreditation was maintained at the next review in July 2022. Simultaneously, a marketing strategy would be drawn up to include online advertising, promotion of a new website with online retail capabilities, and demonstration appearances at relevant groups across Tendring. This strategy would be put into action once the service was fully staffed. Finally, fees and charges would be re-appraised towards the end of 2023 in time for implementation in April 2024.

Having decided that Option 4 allowed time for the service to stabilise and an advertising campaign to take effect and start generating new customers whilst delaying fees increases for service users until April 2024 and was the lowest risk to the Authority and to Tendring residents:-

It was moved by Councillor P B Honeywood, seconded by Councillor Stock OBE and:-

RESOLVED that Cabinet - 

a)     agrees to the continuation of a Tendring Careline Service for residents;

b)     adopts Options 4 as the basis for the longer term approach to deliver a viable and sustainable Careline Service in the long term;

c)      requests Officers to take steps to maximise marketing opportunities to increase the customer base in an orderly way through 2022/23 and 2023/24 in working towards the figures highlighted in Option 4 within Appendix A to the Portfolio Holder’s report;

d)     approves the utilisation of the existing Careline Reserve of £221k to underwrite the financial risks associated with a), b) and c) above; and

e)     requires that detailed updates be presented to Cabinet as part of future financial performance and budget setting reports later in the year in order to provide an ongoing review.