Agenda item

Purpose

To seek approval from the Cabinet member for Health, Wellbeing and Social Care to commit funding towards a pilot social impact bond (SIB) which will deliver drug and alcohol residential rehabilitation.

RECOMMENDED that the Cabinet Member approves

1)    a funding contribution towards the social impact bond of no more than £100,000.

2)    that the funding source proposed for this pilot would be the Public Health reserve. At the end of this pilot a longer term funding source would need to be identified if the service is to be maintained.

Alan Knobel, Public Health Development Manager introduced the report. Individuals referred to the project will be those who are a high cost to the public sector, for example, because of their co-morbidities or offending behaviour. Other public sector bodies may be more willing to invest when the risk of funding treatment for more high cost individuals is shared and seen to be cost effective.

In response to questions officers clarified that

Big Issue Invest are the social investor who are providing the funding for treatment costs up front and taking the risk. The bond may in fact cost them more as the council are nominating up to 12 people. There are other social impact bond schemes but officers are only aware of this particular bond for substance misuse.

The council used to have well over 100 people in residential rehabilitation but have had to restrict access because of finances. In 2013/2014 the council spent around £1 million on inpatient detoxification and residential rehabilitation. 

When the council's main substance misuse contract is re-tendered in November 2021 the bond's provider may revise the process and there may be an option on how the council purchases residential rehabilitation in the future.

Officers confirmed that unless the criteria is met then the council is not liable for payment and that the maximum payment is £100,000. The contract will specify what is deemed sustainable and meaningful employment; a job with the service provider or a zero hours contract would not be considered suitable.

Councillor Winnington thanked Alan Knobel, his team and finance officers for their work in getting to the point where the council will only pay when outcomes are achieved. Even if a client does not get a job they may still benefit from the rehabilitation by getting clean or sober and needing fewer services.  Officers could add a clause to the contract specifying that the service and budget can be reviewed depending on finances within the 24- month period.

Members noted that central government drug and alcohol services are not statutory so the financial burden falls on local authorities, though central government benefits from reduced substance misuse related crime. The council's general public health budget would be better if substance misuse was a statutory service and it received statutory ring-fenced funding. Councillor Winnington thought the proposal was a sensible idea as there is no risk and the council remains in control. It is the right service for people who need residential rehabilitation rather than treatment in the community. He accepted the recommendations subject to the second recommendation being amended to state that a longer term funding source would need to be considered in the re-tendering process of the main substance misuse contract due in November 2021.

DECISIONS

The Cabinet Member for Health, Wellbeing & Social Care

1.    Approved a funding contribution towards the social impact bond of no more than £100,000.

2.    Approved that the funding source proposed for this pilot would be the Public Health reserve. At the end of this pilot a longer term funding source would need to be identified if the service is to be maintained and will be considered in the re-tendering process of the main substance misuse contract due in November 2021.