ACS – Creation of a Local Authority Trading Company
Example EQIA - Full Equality Impact Assessment
Step 2: Scoping – what are you impact assessing?
Service and lead officer:
Officers involved in the EqIA:
What are you impact assessing?
Existing:
New/proposed: ü
Changing/Update/ revision
Other, please list
What is the title of your service / strategy / policy / project?
Creation of a Local Authority Trading Company (LATC)
Q2. What is the aim of your service / strategy / policy / project?
Background. Adult and Community Services is redesigning the way it delivers adult social care services. We need to change in order to meet legislative changes with the Care Act, make savings and most importantly continue to support people with high quality services.
The Cabinet agreed the vision and principles for Pathways to Independence in December 2013. http://www1.dorsetforyou.com/COUNCIL/commis2013.nsf/51D8FBDF582B01BA80257C3D00517773/$file/09%20-%20Pathways%20to%20Independence%20-%20181213.pdf The future of in-house provider services was one area of that vision and Cabinet approved the development of a full business case to establish the viability of a Local Authority Trading Company (LATC).
Further updates were provided to Members of the Adult Overview Committee on 16th April and 23rd June. http://www1.dorsetforyou.com/Council/COMMIS2013.nsf/A855F0DF1D9BFB7E80257CB500508CD7/$file/06.%20Adult%20and%20Communitee%20Services%20Overview%20Committee%20160414%206-1.0.pdf
http://www1.dorsetforyou.com/Council/COMMIS2013.nsf/FA2940A2B4A5C1D280257CFA004C8BE9/$file/0.8%20Pathways%20to%20Independence%20Programme%20-%20update.pdf
Who would be affected?
In-house provider services include residential, nursing, respite, day care, shared lives, reablement and catering services, which employ approximately 735 Full Time Equivalent (FTE) staff (approx. 1000 total staff) and costs £25m per year. They are recognised as high performing services but are constrained as to the range of service users they are able to work with. People who take direct payments to fund their care are unable to buy services from local authority providers. Given that the policy direction for care and support is that direct payments become the default position, there will be a major impact on current viability of community based provider services, if the current provider arrangements continue.
After Cabinet approval to proceed, we engaged Care and Health Solutions, who are national experts in the social care provider field, and who have developed LATC business cases for eight councils, the last one being Buckinghamshire County Council.
In Feb-March 2014 Care and Health Solutions developed an outline business case and high level options appraisal for provider services in Dorset. The appraisal considered 4 options to deliver the current portfolio of provider services:
· Outsourcing of provision to the market
· Continue with a remodelled in-house provision
· Create a new 'start up' Community Interest Company (Social Enterprise)
· Create a Local Authority Trading Company (LATC)
In order to shape the options appraisal report, Care and Health Solutions spent time visiting a selection of provider services, talking to managers and staff and looking at budget and performance information. They were very impressed by what they saw and believe the services can have a very positive future to make savings, develop further and maintain quality.
The appraisal considered quality, cost, governance and acceptability to stakeholders as factors for determining the preferred option. The appraisal concluded that:
· A LATC represented the best opportunity to make savings and be sustainable, to trade and develop new services, with DCC benefiting directly from any profits generated
· A LATC is therefore the preferred option
· A full business case be developed
Since April Care and Health Solutions have been developing a business case. Assuming a business case can be justified, we are expecting to go to seek Cabinet approval in October 2014 to create an LATC, which would go live in 2015/16.
No changes to the delivery of current services are proposed.
Prior to a possible LATC we are undertaking a Provider Services restructure. This restructure was formally launched on 16th June, and will conclude on 30th July. Regardless of any decision concerning a LATC, there are cultural and financial imperatives for change now. We need to create an efficient and sustainable business model for provider services .We want to do this by clustering and rationalising some services and positions. We want to prevent any silo working and share best practice across services.
The LATC would be contracted by DCC to continue delivering the current services, but moving to a formal commissioner/provider relationship with the Council.
Once the LATC is operational, it will look for opportunities to develop through a combination of improving existing services, and offering services to a wider range of people. For example, the LATC would have the ability to trade with service users receiving self directed support payments and other self funders who are looking for a service provider but do not want to be involved in assessments and other forms of council administration. A workshop with Provider Services Managers was held on 27th June to generate ideas for new services.
The proposed benefits of the LATC are:
· Ensuring sustainability of provider services within a local government framed environment
· Improving value for money. Achieved through a formal contractual relationship between DCC and the LATC that incentivises services to improve, and enables the Council to hold managers to account for quality and financial performance
· Acting as a catalyst for a significant change in culture within the workforce and management. This culture change will enable the LATC to make efficiency savings and provide the Council with year-on-year, reduction in costs
· Generating additional income through trading with private individuals and other public bodies.
· Retaining surpluses within the LATC to reinvest in additional services or return to DCC
· Enhancing outcomes for service users by providing more services to more service users
· Ensuring continuity of service for service users by retaining existing DCC staff
· Developing an entrepreneurial culture by encouraging new ideas and services from staff
· Retaining provider of last resort. Maintaining the vital and statutory function of emergency or market failure
· Combining our public sector ethos with private sector discipline
Q3. Who does/will it have an impact on? E.g. public, visitors, staff, members, partners?
Staff impact(As at 21st May), Provider Services staff deemed as in scope and would transfer to the LATC comprise 735FTE, which equates to 1,000 different people.
Affected staff would transfer across under Transfer of Undertakings Protection of Employment regulations (TUPE) to the LATC. Further details about TUPE can be found in this link http://www.acas.org.uk/index.aspx?articleid=1655 TUPE rules apply to organisations of all sizes and protect employees' rights when the organisation or service they work for transfers to a new employer.
Current assumptions regarding the transfer are
· There would be no two tier workforce
· New starter employees into the company would be on the same terms and conditions as transferring staff.
· The company would apply for admitted body status into the Local Government Pension Scheme (LGPS)
· The scheme would be an open scheme and new employees offered a defined contribution pension.
· The company would follow auto-enrolment regulations, as applicable to a new company.
We are expecting an implementation period of at least 6 months from Cabinet decision in October to the LATC being operational in 2015/16. (The earliest the LATC would be operational is April 2015). During the implementation period a major engagement and consultation programme with staff and unions would take place regarding the transfer. Tasks will include
· Define consultation period with HR
· Create consultation paper for respective business areas
· Engagement with Trades Unions
· Staff engagement programme
We do not have any evidence to suggest there are potential negative impacts for staff with Protected Characteristics in the transfer itself, but some consideration needs to be given to specific groups within the implementation period, and these are listed in Section 4.
Service users impact
Existing service users will see no negative difference in the care and support they receive. The creation of a LATC represents a change to the governance in how Provider Services are delivered. Both existing and new service users will be able to purchase additional services from the LATC if they wish to. DCC as the commissioner of service will determine the Key Performance Indicators it expects the LATC to perform to.
A Communications strategy for Service users and carers will be produced to compliment the Business Plan. This is referenced in Section 4, Action Plan.
Q4. Are there any potential barriers to implementing changes to your service / strategy / policy / project? eg. capacity or financial issues
No. An Implementation Plan will be included within the October Cabinet report, outlining the key steps required to implement the LATC.Q5 . Who else will be involved in implementing this service /policy…
Step 3 : Information gathering – what do you need to know about your customers?
Q6. What data do you already have about your service users, or the people your policy or strategy will have an impact on, that is broken down by equality strand?
The breakdown of the 735 FTE (approximately 1,000 staff) is as follows
Disability / No and % Disabled / No and % not Disabled / Not declared / Total25
(2%) / 564
(76%) / 146
(22%) / 735 FTE
(100%)
Ethnicity / Black and Ethnic Minority / White British / White (Irish and AOWB) / Not declared / Total
50
(6%) / 532 (71%) / 38
(5%) / 116
(18%) / 735 FTE
(100%)
Gender / Female / Male / Total
641
(88%) / 94
(12%) / 735
(100%)
Age Bands / 16-24 / 25-39 / 40-49 / 50-59 / 60-64 / 65+ / Total
27 (4%) / 123
(18%) / 180 (24%) / 302 (36%) / 78 (10%) / 25
(6%) / 735 FTE (100%)
Q7. Do you need any further information broken down by equality strand to inform this EqIA?
No
If yes, list here and add actions to gather this data to your action plan at step 5):
Expand box as necessary
n/a4. Making a judgement about impacts
Protected Characteristics for staff
Age. No evidence to suggest any negative impacts.
Disability. No evidence to suggest any negative impacts. During consultation however, we will ensure that the process is fully accessible to staff with physical or sensory impairments or learning difficulties.
Gender and Transgender. No evidence to suggest any negative impacts.
Race . No evidence to suggest any negative impacts. However, during consultation we will need to ensure the documents are fully accessible to any staff whose first language is not English.
Religion or belief. No evidence to suggest any negative impacts.
Sexual orientation. No evidence to suggest any negative impacts.
In addition, there is no evidence to suggest any negative impacts for service users, so there are no changes to services users with protected characteristics.
Safeguarding
Is there anything in this policy/procedure that has implications for safeguarding children or vulnerable adults?
Yes No ü
If yes, please ensure that the policy/procedure is submitted to the DCC Safeguarding Adults Head of Service or Children’s Safeguarding Head of Service.
Health
Assessing health impacts is also an important issue, many factors can influence health. Health inequalities include income, housing, employment, the environment, transport, education and access to services. For more detailed information please see ‘Health Impacts’.
Conclusion : The creation of a LATC is a key objective within the Pathways to Independence programme. Details of the Pathways to Independence Programme can be found in this link https://www.dorsetforyou.com/pathways-to-independence
An Implementation Plan of six months minimum will engage and consult with staff and unions, which will identify and address detailed issues that such a transfer of staff will entail. We do not have any evidence that suggests there are any specific requirements/negative impact upon staff with protected characteristics. The EqIA can be revisited as required subsequently.
A Communications Plan will also be produced to inform service users, carers and other stakeholders of the proposed change.
5. Action planning
Refer to Step 4
Q8. Is there any potential for direct or indirect discrimination?
No
If yes, please explain how you are going to change this?
Expand box as necessary
n/a1
Step 4: Improvement plan – what are you going to change?
Expand boxes as necessary
Issue / Action / Performance Target(what difference will it make) / Lead Officer / Achieved by / Difference made
(General) Communication with staff / Provide regular communication to staff, listen, to their views and provide opportunities for discussion
Communications methods include Team Meetings, Staffnet, Yammer, Team Brief, Director’s blog & Newsletters
Ensure that documents are fully accessible to any staff whose first language is not English / Staff feel engaged and enthused about the creation of a LATC / Phil Rook / April 2015 / There will be a smooth transition from DCC to the LATC.
Consultation and engagement process for staff who are on maternity leave, long term sick, work part time, or have caring duties / Hard copies of all information will be sent to all such staff.
Line managers will be appraised of their responsibilities by following DCC policies and procedures. / All staff will be aware of the processes and timelines, and will be able to contribute / Tracy Scott / April 2015 / There will be a smooth transition from DCC to the LATC.
Communications for service users, carers and other stakeholders / Develop and implement a Communications Plan for service users, carers etc / Service users, carers and other stakeholders understand what a LATC is / Phil Rook / James Potten / April 2015 / Service users and carers will be reassured about how their support will be delivered in a LATC
EqIA approved by: ______Date: ______