Richard Todd Presentation

Report
SOCIAL INVESTMENT AND SHARED LIVES
27 FEBRUARY 2014
Richard Todd, Associate Director
[email protected]
Social Finance is authorised and regulated by the Financial Conduct Authority FCA No: 497568
WHAT DO WE DO?
2
Social Finance works with government, social ventures and investors to unlock
financial barriers and help drive social change.
Change the way government
seeks to tackle problems
We create financial
structures and implement
programmes that bring stable
and sustainable funding to
organisations dealing with
social issues
Help build and support
growth of strong, effective
social enterprises
Expand the range of investors
able to participate in social
investment
©Social Finance 2014
DELIVER SUSTAINABLE
AND SCALABLE SOCIAL
CHANGE
OUR WORK TO DATE WITH SHARED LIVES PLUS
Since late 2012, Social Finance has been
working with Shared Lives Plus to
support a national expansion of Shared
Lives.
A proportion of this work was funded by
the Cabinet Office Investment and Contract
Readiness Fund.
The aim of the work has been to develop a
business case for expanding Shared Lives,
and an investment model to enable
expansion to be delivered.
An interim summary of this work was
published in the report, “Investing in
Shared Lives”, highlighting the benefits of
Shared Lives and a proposed model for its
expansion.
©Social Finance 2014
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PRACTICAL APPLICATION: DEVELOPING A SOCIAL
INVESTMENT MODEL
Social investment approaches are built upon analysis of the underlying social problem:
1. What is the social need we are trying to meet?
Social investment in
practice
2. Are there interventions which meet this need?
Social investment already
funds services addressing a
range of social issues with
new provision. These
include:
3. Are there revenue streams that could support the
intervention?
4. Would a new investing or contracting approach add value to
service users, providers and commissioners?
©Social Finance 2014
• Reducing the number of
adolescents entering the care
system
• Supporting entrenched rough
sleepers to achieve a stable
lifestyle
• Helping young people at risk
of being not in education,
training and employment to
gain qualifications and enter
work
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THE SOCIAL NEED
The social care system needs to change radically if it is to meet funding challenges
but also deliver better, more personalised care, built around individuals and their
potential.
• This situation is particularly acute for adults with learning disabilities.
Evidence shows that community-based support enables greater independence,
inclusion and choice, and that challenging behaviour lessens with the right
support.
Which are the models that can support vulnerable adults, work with them to build
their own capacity and unlock community resources?
©Social Finance 2014
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SHARED LIVES COULD BE A CENTRAL PART OF MEETING
THIS CHALLENGE
Shared Lives is a form of care where individuals in a community share their family
and community life with someone in need of care support.
• Arrangements are built around both the needs of individuals and their potential to
develop life-skills and self-confidence in a supportive family environment.
• Users of Shared Lives are empowered to take greater control over more fulfilling lives
as part of their community.
Current Shared Lives provision performs well on measures of quality, with twice as
many Shared Lives schemes rated ‘Excellent’ than any other form of care1.
Today, Shared Lives arrangements represent just 2.2% of all adult residential and
nursing care placements in England2.
Notes:
1 – The Adult Social Care Market and The Quality of Services. Care Quality Commission (2010)
2 – Adult Social Care Combined Activity Returns 2012-13. National Adult Social Care Information Centre (NASCIS)
©Social Finance 2014
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THE FINANCIAL CASE FOR EXPANDING SHARED LIVES
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In addition, our analysis has shown that Shared Lives can provide a cost-effective
means of delivering high quality, person-centred care.
Average annual savings per client in Shared Lives arrangements (£k)1
30
25
20
15
10
5
0
Adults with learning disabilities
Adults with mental health support needs
IN ADDITION TO PROVIDING HIGH-QUALITY CARE, A WELL-RUN SHARED LIVES
SERVICE COULD GENERATE SAVINGS FOR LOCAL COMMISSIONERS.
©Social Finance 2014
Note: 1 – Based on a cost-benefit analysis carried out across three local authorities, comparing the local costs of Shared Lives arrangements with
residential care and supported accommodation placements.
DETOUR – A SOCIAL INVESTMENT APPROACH: COLLATED SERVICE
INVOICING DATA SET
ILLUSTRATIVE DATA ONLY
©Social Finance 2014
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DETOUR – SOCIAL INVESTMENT APPROACH: SUMMARY OF CARE
COSTS – ADULTS WITH MENTAL HEALTH SUPPORT NEEDS
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Illustrative spread of individual
weekly costs (£)
Summary by service type (£)
ILLUSTRATIVE DATA ONLY
Service Type
No of clients
All
582
Cash Individual Budget Payments
20
Day Care
5
Home Care
113
Korsakoff
32
Nursing Residential4
43
4
Residential
138
Supported Accommodation5
226
% of total
100%
3%
1%
19%
5%
7%
24%
39%
Spend/week
(£)
193,368
3,069
354
11,678
15,003
27,079
62,123
74,062
% of total
100%
2%
0%
6%
8%
14%
32%
38%
Implied annual Average per person
cost (£)2
per week (£)3
10,082,229
332
160,005
146
18,440
64
608,899
96
782,280
469
1,411,898
636
3,239,106
462
3,861,601
328
2500
2000
Residential care
1500
1000
Nursing care
Supported Accommodation
Other
500
0
©Social Finance 2014
A NUMBER OF BARRIERS STILL INHIBIT THE NATIONAL
EXPANSION OF SHARED LIVES
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BARRIER
ISSUE
In working with many local authorities and Shared Lives services across the country, a set of
common barriers have emerged:
Lack of up-front
investment
Lack of capacity and
expertise
Sustainable growth can
be challenging
Contracting models
that limit growth
Up-front investment is
required in order to
fund the recruitment of
new staff members and
carers, training and
development
High-quality expansion
can require modelspecific knowledge, such
as how to best recruit
and match carers with
those requiring support
Shared Lives services
require a strong
management team to
enable continued
expansion – for instance
in recruiting high quality
staff
Many services still
operate within a block
contracting
arrangement, which
does not incentivise the
creation of new
arrangements
Local authorities have
struggled to provide upfront funding to invest in
services before savings
are yielded
Few high quality
independent providers
of Shared Lives services
exist, limiting options
for local provision
Continued focus on
performance is often
lacking, limiting the
scope for development
Schemes, even when
external of local
authorities, do not have
financial capabilities
support innovative
contracts
A SOCIAL INVESTMENT MODEL SHOULD AIM TO OVERCOME THESE PROBLEMS IN SUCH A WAY SO
AS TO BE ABLE TO RESPOND TO GROWING NATIONAL INTEREST IN THE SHARED LIVES MODEL
©Social Finance 2014
THE ROLE OF THE SHARED LIVES INCUBATOR
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Incubation pathway
Enabling growth through
work with
commissioners
3-5 year incubation
period
Schemes set up to thrive
post-incubation
Local authorities
committed to
expansion of Shared
Lives
Growing Shared
Lives schemes
Mature Shared Lives
schemes
• Advice to local
authorities looking
to expand Shared
Lives provision
• On-going advice
and support to
schemes
• Investment in
• Connection to
network of
incubated schemes
to share learning
growth
THE INCUBATOR WILL BRING BOTH PRACTICAL EXPERTISE AND INVESTMENT IN LOCAL
SERVICES TO GROW SHARED LIVES
©Social Finance 2014
NEXT STEPS
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We continue to work closely with multiple local authorities as they finalise their
approach to expanding local schemes.
• Since launching the findings of our work, we have had interest from a number of local
authorities looking to expand local provision, either through the spin-out of existing
services or the development of new services.
• We have also had significant support from national stakeholders.
In order to respond to this momentum, and to have capital ready to support the
first wave of scheme expansions, we are raising an initial £1m of social investment.
We have developed a pathway for local authorities to expand Shared Lives locally,
and identify the most appropriate funding and contracting options.
• The first stage of this is a health-check on existing provision, the potential to expand
services and a developing an outline pathway to expansion.
©Social Finance 2014
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THANK YOU
©Social Finance 2014

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