Agenda item

The Strategic Director, Customer and Community Services updated the Committee on the work to date, work currently being undertaken and that planned for the transition of Children’s Services to a new organisation.

Members were reminded that the Council’s services for children in need of help and protection, looked after children and the effectiveness of the Local Safeguarding Children Board were deemed inadequate by Ofsted in February 2014. As a result, the Secretary of State issued a Direction in October 2014, which required the Council’s Children’s services function to be delivered by an external body. The Direction also provided for the appointment of a Commissioner to secure improvement in the Council’s performance of its children’s social care functions, including establishing the new organisation. The Committee were informed that Ms Eleanor Brazil had been appointed as Commissioner. 

It was brought to the Committee’s attention that although a new model would be implemented to deliver children’s services the Council would retain all its legal obligations for the statutory duties. It was clarified however, that the Council would have limited control over how the children’s social care functions were delivered and holding the new organisation to account. Following a Member query, it was noted that the full legal implications would only be known once the details of the new organisation and scope of services had been determined. 

Members sought clarification regarding implications for the Council’s workforce. It was explained that externalisation of the service area would involve a transfer of approximately 240 current employees to the new organisation but until the Secretary of State had confirmed details regarding the scope of functions for the new organisation, the Council was unable to commence any TUPE consultation process with affected staff.

Concern was expressed regarding what, if any, financial implications would arise from establishing an external provider to deliver the Council’s children’s services functions. The Strategic Director explained that there would be significant interim costs to the Authority as a result of having to comply with the terms of the Direction as well as the additional running costs of the new external provider. These costs would arise from the overheads of the new organisation, the reduction in economies of scale for the Council, the scope of services externalised and the necessary project capacity to enable the design, establishment and transfer. Members were informed that the Secretary of State had confirmed that some of these costs would not have to be borne by the Council and local tax payer and that the Council would continue to act rigorously and fairly in securing this outcome.  

In response to how long the external provider would run the children’s services for the Council, officers explained that a timeframe of five years had been proposed. Targets for the new organisation to achieve would be set out in the contract, with a view to achieving a Good rating on the Ofsted scale within three years of the start of the contract and an Outstanding rating within five years.  

Resolved – That progress of the transition project to date be noted and that a further update report be submitted to the April meeting of the Committee.