Committee Report: Resource Allocation System

Report to:	Cabinet
Date:	16th November 2006
Subject:	Resource Allocation System
Report of:	Director Of Adult Services
Contact officer:	Paul Stevenson 01942 827800 Bridget Hollingsworth – 01942 828202
Purpose/summary:	To seek approval in principle for the adoption of a Resource Allocation system, which will be used in the Adult Services Department to determine the indicative resource required to meet the needs of certain care packages.
Alternative options considered and reason for selecting the one recommended:	The Department could continue to operate without the model which will leave uncertainty as to the expected cost of packages prior to commissioning and expose the department to further budgetary pressures. It would also potentially hold back the development of Individual Budgets and the opportunities for giving greater choice to service users.
Recommendation / decision:	That members approve in principle the introduction of the Resource Allocation System and that further work is undertaken which will set out the detail of how the model will be applied and the relevant parameters.
Key Decision:	This report does not involve a key decision at this stage.
Implications:
Summary of reasons for report being closed in the public interest:	Not applicable.
Financial:	The introduction of a Resource Allocation Model will give more predictability on the likely cost of packages and will give service users a clearer indication of the resources available should they opt for a direct payment or individual budget.
Staffing:	Adoption of the proposals may require additional staff resources for the direct payments team, which will be assessed when the model has been finalised.
Policy:
Equal Opportunities - Has a Diversity Impact Assessment been conducted?
Wards affected:	All
Special Interest Members – Which have been consulted

Tracking/Process:

Panel	Overview & Scrutiny	Cabinet	Council
	Consultation	Ward Members	Partners
	-	-	-
-	-	16 th November 2006	-

List of Background Papers in accordance with Section 100D of the Local Government Act 1972:

Document	Date	File Reference	Place of Inspection
In Control – Individual Budgets – Guide for Local Authorities on Creating a Local System of Self-Directed Support (Version 4)	2006	N/A	In Control website

Proper Officer	Bernard Walker
Date	7 th November 2006

1.0 Background

1.1 In 2003 Wigan became one of six local authorities to participate in the national ‘In Control Project.’ This project was developed to help social services departments fundamentally change their social care systems to increase the citizenship of disabled people. The overall aim of the project was to enable existing resources to be allocated, and services delivered, in ways that enabled personalised responses to need and choice over how needs were met.

1.2 This process involved assessment of an individuals needs. Information from the assessment was then fed into a process, known as the Resource Allocation System, which would ‘band’ the needs into certain categories. Each of these bands equated to a sum of money. This money could then be given directly to the individual and they would use this funding to buy their own support.

1.3 The project in Wigan involved 15 families and was seen as a great success both locally in terms of the direct and positive impact on the lives of the individuals and nationally where Wigan remains a leader in the field.

1.4 Since the introduction of the In Control project there have been various national drivers which are encouraging the development of individual budgets and choice:

‘Opportunity Age’ an initiative of the Department for Work and Pensions confirmed the intention to explore the potential for individual budget for all people using adult social care including older people.
The recent health and social care White Paper ‘Our health, Our care, Our say’ has confirmed that the Individual Budget pilots have the potential to set the direction of social care for the next generation.
The Local Government White Paper (2006) is clear in that it expects us to reshape public services around citizens and the communities that use them.

1.5 The Government has stated that individualised budgets will be rolled out across all local authorities over the next few years such that people using social care have the choice of an individualised budget by 2012.

1.6 The development of a Resource Allocation System is a logical extension to the In Control project and an essential pre-requisite to the eventual implementation of Individual Budgets.

1.7 It also provides an opportunity to better control the cost of packages to ensure they are aligned with assessed need, which in the context of the budgetary pressures facing the Department currently and in future, is a significant factor.

2.0 Information

2.1 Following on from the original In Control pilot work has continued nationally on its development. Allied to it has been the development of a Resource Allocation System (RAS). The In Control project has produced several versions of the Resource Allocation System, which is now up to version 4. Using the national model as a base a ‘Wigan version’ of the Resource Allocation System has now been developed.

2.2 Locally, our aim has been to develop a more detailed and robust resource allocation system which would enable everyone who is entitled to social care support to opt for self directed support if they choose.

2.3 A draft version of the system has already been tested on a range of 100 existing packages, which has identified some significant variances both ways in comparing the RAS assessment to the current cost of packages. This work will be used to refine the model before presenting the final model for consideration.

Resource Allocation System principles

2.1 The basic principle of the Resource Allocation System is to give a points weighting to a series of factors which relate to the components of care packages. An overall points score is then determined which is multiplied by a locally determined £ amount of resource per point – to give an indicative value to a particular package. The £ amount of resource will be determined by reference to the current financial resources put into existing packages and the portfolio of current care packages.

2.2 The indicative resource can then be compared to the cost of current packages or used to give an indicative value for a new package following assessment

2.2 Having this information available before a package is put in place gives a better guide both to service users and social work staff and managers on the indicative resources likely to be required for a package.

2.3 A list of the factors which are taken into account in the determination of the RAS score is set out in Appendix A.

Benefits and issues to be addressed

2.8 Some of the benefits which would arise from implementation of the Resource Allocation System are as follows:

The system will define how much an individual has to spend should they opt for a self directed support model or a direct payment, which will give service users greater choice.
The system will enable adult services to commission more effectively within a financial envelope should people choose not to take the individual budget route.
The system will enable us to manage our budgets more effectively and to predict demand more precisely.
The system should support the development of local provision, rather than out of borough provision, particularly where the latter would be a more expensive option
The financial allocation is linked to the assessment and the individual or their relatives/carers must approve this before any progress can be made which should make all parties aware of resource expectations at the outset.

2.9 The potential issues which will need to be addressed as part of the implementation of the system include:

Process of dealing with changes in current packages, particularly where the RAS assessment of a persons needs are at variance to the current cost of provision
Weightings given to the various factors assessed as part of the Resource Allocation System and the setting of the £ amount of resource which equates to each point of the overall score.
Dealing with potential challenges from service users or families where a package with a particular provider or location is more costly than the package determined under the RAS.

2.10 These issues will be considered further, subject to approval to proceed in principle.

3.0 Proposals

3.1 On the basis of the information supplied authorisation is sought from Cabinet to:

Continue to develop and test the RAS model
To finalise the details of how the model would work and relevant parameters and points weightings
To develop an implementation strategy for this process to include all service user groups.
Define how we use the statutory review system to incrementally run all existing packages through the RAS to ensure consistency and equity.

3.2 Subject to approval in principle a further report will be brought to Cabinet setting out the detail of the proposed Resource Allocation System to be implemented in Wigan.

4.0 Alternative Options Considered and Reason for the Recommended Option

4.1 The alternative would be to continue with the present arrangements for the commissioning which would leave uncertainty as to the cost of packages and possible budgetary pressures and give less information to service users considering the option of direct payments or individual budgets.

5.0 Conclusion

5.1 The RAS will give better budgetary control associated with the cost of care packages and ensure that packages provided are in line with assessed need.

5.2 The pilots have attracted strong interest from policy makers. ‘Improving the Life Chances of Disabled People’ (Prime Minister’s Strategy Unit – 2005) set out a radical agenda for the transformation of service systems used by disabled people so that people could achieve independent living and direct their own lives. Nationally the In Control project is no longer a demonstration project, so local authorities are now members and empowered to take forward the principles set out in the RAS.

5.3 This is an exciting opportunity to really develop and reinforce the Council’s ambition to focus on individuals, encouraging as it does, self determination, citizenship and choice.

Return to Agenda

Appendix A - Resource Allocation Model (Ras4)

Factors taken into account in the determination of the RAS score:-

Looking after myself - my personal needs
Relationships
Being part of the local community
Work, leisure and learning
Making Decisions
Staying safe from harm
Complex needs and risks
Family carer and social support