Are spending cuts accelerating the personalisation of health and social care budgets?

Are spending cuts accelerating the personalisation of health and social care budgets?

The personalisation of health and social care budgets has been an ongoing component of the public services agenda for a number of years now. Previously, Local Authorities would have Block Contracts with providers, i.e. there would be an agreement to a given level of service for a fixed price; the Local Authority would then refer service users to the appropriate provider.

Personalisation via Personalised Budgets or Direct Payments  is designed to allow service users to “purchase” care, support and advice from a wide range of providers, not restricted to those with whom the Local Authority has a block contract.  Some Local Authorities have introduced the role of a Care Service Broker, an independent advisor who maintains details of care service providers and refers service users to the appropriate service.

While personalisation has been progressing for some time, the spending cuts that Local Authorities are now facing could be increasing the speed at which Health and Social Care services replace block funding from Local Authorities with a scheme where the service user holds the purse strings.

It can also be seen in some areas however, that spending cuts are going to delay the personalisation of budgets as Local Authorities and voluntary organisations simply can’t afford to convert to the new methods of procurement.

While personalisation is a national issue, the extent to which it will affect individual charities will depend on how their Local Authority embraces restructuring of service delivery. No doubt Local Authorities will be keen to adopt personalisation if they think it will afford them efficiencies and savings. Charities will therefore need to monitor closely the plans of their Local Authority and adapt to this new funding landscape, marketing their services to service-users or Care Service Brokers as opposed to LA’s and statutory authorities. Not only will they have to change the way they promote and market their services, they will have to revise their billing systems.

Fundraising Consultants at Charity Fundraising Ltd would be delighted to discuss how we can help charities with their planning, enabling them to adapt to meet the challenges that the personalisation agenda brings.