Mass switch to direct payment puts care plans under threat

Published on Saturday 19 December 2009 10:55

PLANS to re-tender the care of nearly 800 of the Capital's most vulnerable people are today on the brink of collapse after it emerged that more than two in three people have applied to opt out of the new contracts.

The city council had intended to appoint new care providers to care for 777 people with learning and physical disabilities, mental health and hearing impairments, but the plans were put on hold a fortnight ago after an independent review of the process was ordered.

It has now emerged that a total of 440 people have put in new applications for "direct payments" – where service users are given money by the city council to employ their own carer, provided they are registered with the Care Commission.

Another 95 applications have already been processed – meaning that, if all the direct payments go through, 69 per cent of users will be providing their own care.

It is understood that such a situation would result in the collapse of up to eight of the 11 contracts because the number of clients being passed on to the new providers would be too small.

It was also today confirmed that business adviser firm Deloitte has been appointed to undertake the independent evaluation of the whole tender process.

Ian Hood, co-ordinator of the Edinburgh-based Learning Disability Alliance Scotland, said: "Once people get a direct payment the council can't tender their service. They'll have come out of the whole process for good.

"I suspect some people in the council will try to get at least one or two of the contracts out of this but I don't know if they'll succeed. The whole thing could collapse.

"I would be very surprised if Deloitte doesn't find problems with this process. We have no confidence in the way the whole process has been run."

Tom Aitchison, chief executive of the city council – who has previously come under fire from some councillors for not sharing enough information with elected members about the tender process – has now written to all councillors explaining why the review is taking place.

He said the council had received an inquiry which questioned whether there had been a "complete separation between price and quality" in the tender process.

Deloitte is to now undertake an assessment of the tender process and also assess the "consistency of the approach" used by the council.

Mr Aitchison said: "The consultants have been asked to report as soon as possible.

"With the holiday period imminent, this will mean that the bulk of the work will take place in January. The aim is to be able to report to the finance and resources committee on 21 January."