Personalisation update Birmingham’s Story

Steve WiseService Director (Business Change)

September 2012

Birmingham’s Costs

The options for the Council:

Maintain current budget? Fund the demographic projections? Transformation?

LSE projection

Budget projection

10 years

Co

sts

Transformation projection

BCC projection

Benefits model

Cost

avoidance

Cost

reduction

Year 10Year 6

£250k

£300k

£340k

What has changed?

• Was more service for more people with the same money (transformation)

• Now more for more with less (austerity)

• Transformation - £229m of savings over 10 years to fund demographic growth.

• Austerity – now £419m of savings over 10 years – but still not enough.

Funding Picture

NHS

Public funded social care

via local government

Personal contribution

Transformed Funding

Personal care and contributions

Gate keeping

Gate keeping

Gat

e k

eep

ing

Gate k

eepin

g

IBs Market shaping

Informed choice

Prediction and

prevention

Income maximisation Enablement

Benefit dependencies

USERSUSERS

More funds diverted to enablement

Fewer users require an

IB

Where do you fit in?

• In the prevent space around £9m.

• There is some penetration into care packages (£2m out of a total of £180m).

• From my perspective the voluntary sector could exist across all elements of the personalisation journey.

• Younger adult care needs a change of approach!

Conclusions

• We were already on a massive change journey with transformation.

• Austerity has tested the system to the limit!

• Integration with Health essential?

• If the voluntary sector is not to be squeezed, look at personalised services – Birmingham circa £180m!