SWSG Guidance Package, Index Ref. F4

19 December 1996

Directors of Social Work/Chief Social Work Officers of Councils

Copy to: Chief Executives of Councils

Association of Directors of Social Work

Convention of Scottish Local Authorities

Holders of SWSG Guidance Package

Dear Colleague

COMMUNITY CARE PLANS: DIRECTIONS ON PURCHASING

Summary

1. This letter reminds social work authorities, as they draw up Community Care plans for 1997-2000, of the requirements of the Directions on Purchasing and of their duty to use resources effectively.

2. Scottish Office Social Work Services Group circular SWSG13/1994 of 2 November 1994, advised local authorities on the terms of the Directions on Purchasing. The Directions require authorities to include in their community care plans statements, for the main types of care service, of:

a. the planned volumes to be purchased from each sector (voluntary, private and local authority, including provision by authorities’ own provider units); and

b. the estimated expenditure on such purchases from each sector.

3. The guidance made clear that a statement of the unit costs to authorities of these services should be included. The unit costs should be shown not only in terms of gross costs to authorities (the cost of providing at the authorities own hand and charges to authorities in the case of purchases from independent sector providers) but also as net costs to authorities. Net unit costs and expenditure should be shown net of DSS benefits in relation to residential and nursing home care, and in all cases, net of charges to clients.

4. Compliance with the terms of the Directions will assist local authorities in planning the provision and funding of services to ensure that they fulfil their duty to "make proper arrangements for securing economy, efficiency and effectiveness in their use of resources" (as inserted by section 170 of the Local Government etc (Scotland) Act 1994). The information required by the Directions will also assist service providers and potential providers to identify

the likely requirement for particular service types. It will advise service users and the local electorate how councils propose to make use of the resources available to them. Consideration of future financial requirements should be an integral element of the community care planning process. It is, therefore, important that the information required by the Directions is provided for the full period covered by community care plans.

5. The Minister of State announced, on 14 November, proposals to make Directions on Information. These will require authorities to make available to elected members and the public full information on the net costs to authorities of purchasing care in each sector of the market, including their own directly provided care. This information will allow more focused identification of value for money issues. Draft Directions and guidance will be issued for consultation shortly.

Contact Point

6. Copies of community care plans should be provided to me, at the above address. Any queries on the guidance, or the existing Directions on Purchasing, should be addressed to Neil Rennick (Telephone: 0131 244 5389) and on planning generally to Jenny McNeill (Telephone: 0131 244 5424) at the above address.

Yours sincerely

GAVIN ANDERSON