Agenda item

The Strategic Director of Customer and Community Services provided an update on the externalisation of Children’s Services. Following the appointment of the Department of Education’s (DfE) support services team in January 2015, a governance structure was set up to manage the transition of services.

Members were informed that the model of the organisation was a private company, limited by guarantee with no share capital. However, the long term aspiration was for the company to convert to a Community Interest Company (CIC) but this would be a matter for the Children Services organisation (CSO).  Details of the Fit for Purpose Schedule were outlined which highlighted the matters that were outstanding and needed to be met prior to the provisional go live date of September 2015. 

Clarification was sought regarding the Council’s responsibilities following the transfer of services to the CSO and how long the organisation would be set up for. It was explained that by contracting with the CSO the Council would retain all its legal obligations for the statutory duties. However, the Secretary of State had stated that the services would be ‘out of Council control’ and therefore the Council may  have limited control over how the children’s social care functions that were delivered or in being able to hold to account the CSO for any failings. It was noted that the CSO had initially been established for a period of six years and there was no definitive end date. 

Concern was expressed as to how the Council could hold the CSO accountable. Committee Members were informed that performance would be monitored against Key Performance Indicators (KPIs) and ultimately referral could be made to the Minister if targets were not being achieved.

Members queried the financial costs associated with the transfer of services. The Strategic Director informed the Committee that the Memorandum of Understanding confirmed that the Council would be reimbursed for all costs.  The Council had been advised of a cap on costs of £615,000 which was expected to cover more than the Council’s project and professional services costs. Although Council officers recorded time currently had a value of approximately £200,000 areas of concern remained including accommodation fit out, ICT set up costs and client management costs. It was noted that the CSO would be based at Ground Floor West at St Martins Place.

A Member asked for information relating to the recruitment and retention of staff under the CSO. It was explained that staff numbers outlined within the report were likely to remain unchanged, with permanent members of staff being TUPE’d across to the CSO. The Council had agreed to an Open pension Scheme to enable existing public sector employees to move across to the CSO without jeopardising their current Local Government Pension Scheme pensions. Members were informed that it would be for the CSO to decide whether to continue to use agency staff and or consultants.

The Committee agreed that the necessary arrangements be made for the CSO to replicate the governance reporting structure adopted by arvato, with monitoring reports being submitted to the Committee on a bi-annual basis.     

Resolved – That the update on Externalisation of Children’s Services be noted.