Argyll and Bute HSCP on track for £2.3 million overspend

A report has also revealed that an overspend of £2.3 million is being projected for the area’s health and social care partnership (HSCP) during the 2024/25 financial year.

 

Argyll and Bute Council is also likely to be approached to help fund the overspend, from savings relating to pension costs.

 

The details are given in a report to go before the HSCP’s integration joint board (IJB) at its meeting on Wednesday September 25.

 

The document notes that the HSCP had overspent its budget by £800,000 as of Wednesday July 31.

 

James Gow, the HSCP’s head of finance, said: “The forecast is of concern, particularly in relation to social work services where there are now several areas of material overspending.

 

“In addition to the implications in the current year a further concern is that the budget is already reliant upon reserves which are reducing and largely committed.

 

“Members will recall that the budget relies upon the use of reserves and an allocation from the nonrecurring pension fund saving.

 

“There is uncertainty in respect of the forecast at this early stage in the year, particularly as some funding allocations are not yet confirmed and pay settlements have not been agreed.

 

“Within social work, children’s and families, mental health and older adult budgets are all overspending and a large adverse variance is forecast. The month four figures are reporting a projected overspend of £1.5 million.

 

“The main driver relating to children’s services is the increased number of children placed in out of area placements. These are considered to have been unavoidable and each one is carefully reviewed and considered before being contracted.

 

“This cost pressure was not foreseen at the time the budget was prepared. The forecast overspend on this heading is £700,000 on a budget of £8 million and there is an expectation that this will increase further.

 

“It also appears that spend on older adults is above budget with spend on agency a particular issue.

 

"The budgets summarised below were increased from £35.6 million to £40 million (12 per cent) to allow for increasing demand and inflation. Social care agency spend is already at £1.5 million year to date.”

 

Mr Gow added: “The new care at home contract is on track for implementation in October 2024. This is expected to result in reduced costs in the later part of the year.

 

“The national focus on reducing delayed discharges from acute services continues and is adding to the pressure to ensure people are placed in residential care or provided with care at home packages as quickly as possible.

 

“Services are being provided beyond the staffing levels and available budget we are able to support on a sustainable basis. Unlike in some other HSCPs, no action has yet been taken to restrict provision. The HSCP is considering what action it can take to reduce spend and manage within budget.

 

“It is likely that the HSCP will require to seek additional support from the nonrecurring savings relating to pension costs from Argyll and Bute Council to fund its overspend. This will restrict flexibility in future years, adds to the longer-term gap between spend patterns and available resources.

 

“This will also limit funding for development and transformation as the balance shifts further towards managing immediate pressures rather than longer term change.”