Report to:	Lead Member for Adult Social Care and Health
Date of meeting:	15 May 2023
By:	Director of Adult Social Care and Health
Title:	Direct Payments Support Service (DPSS)
Purpose:	To seek Lead Member approval for the re-tendering of the Direct Payments Support Service (DPSS) contract.

RECOMMENDATIONS: The Lead Member is recommended to:

1) To approve the re-commission of the Direct Payments Support Service; and

2) Delegate authority to the Director of Adult Social Care to take all necessary actions to give effect to the implementation of the above recommendation including the award of the contract to the successful bidder.

1 Background

1.1      Direct Payments (DPs) enable any disabled adult or parent of a disabled child who is eligible for a Community Care Service or service provided under Section17 of the Children Act 1989 and the Care Act 2014 to receive an agreed sum of money to purchase the support they need (“Personal Budget”) instead of receiving a service directly from the relevant Local Authority. This also includes services that may be provided to carers under Section 2 of the Carers and Disabled Children Act 2000 . The Care Act (2014) also explicitly encourages DPs for people accessing care and support .

1.2      Nationally and locally, there is an increased emphasis on personalised care and self-directed support and the use of DPs are one of the key mechanisms for providing eligible individuals with choice and control over how their care and support is provided. 

1.3      Direct Payment Support Services (DPSS) are currently commissioned from People Plus Ltd and Independent Lives. Their contracts end on 31 March 2024.

1.4      DPSS support clients with information and advice relating to DPs. Key functions include supporting clients considering if a Direct Payment is right for them, recruitment and pre-employment checks, client reviews and contingency planning. The DPSS payroll service ensures payments to Personal Assistants (PAs) and support staff are accurate, made on time and taxes are paid on schedule. Additionally, it provides expert advice to direct payment clients on employer and tax requirements.

1.5      Approximately 1,515 clients currently receive a Direct Payment (approximately 32.7% of all clients receiving long term support in the county).  The value of these payments is in the region of £7.5 million annually.

1.6     Any Direct Payment client can access the DPSS. Currently, 557 clients use the DPSS services in East Sussex (78 with Independent Lives and 479 with People Plus).  

2 Supporting Information

2.1       As part of a wider review of the end-to-end process of a Direct Payment, co-production has taken place with stakeholders on re-designing and scoping the DPSS. The stakeholders involved include Adult Social Care Teams, Children’s Services, current clients and their carers and/or suitable person.

2.2       We have also held a range of market engagement events with experienced service providers, and stakeholders to establish the model for the DPSS.

2.3        The proposed DPSS model, developed with stakeholders to offer choice, and to enable clients to self-direct their care and support with quality services is as follows:

· Lot 1 is for a Strategic Partner, who will be responsible for delivering early advice, recruitment, and core support.  The Strategic Partner will work collaboratively with the council on ongoing service development, including engaging with lived experience and supporting partnership working with payroll providers and local stakeholders to ensure a holistic service for clients.

· Lot 2 is for an approved list of payroll providers.  The Strategic Partner can also bid to provide payroll services. The approved list will be limited to up to 3 providers, to ensure providers have sufficient cases to create a sustainable business.

2.4     Annual Contract value Year 1:

· Lot 1: £171,000

· Lot 2: £458,000 per annum

· Combined maximum Year 1 annual value = £629,000

· Total contract value over 7 years: £4,801.000 (assumes 20% client number growth over duration, relating to Lot 2 costing)

2.5       For Lot 1, Strategic Partner, there is existing provision within the Adult Social Care annual revenue budget.

2.6       For Lot 2, Payroll, the funding is already committed from the Adult Social Care core budget, and through client contributions.

2.7       The contract term is proposed as 5 years, with an option to extend for up to 24 months.

2.8       The timetable is proposed as:

· Tender documents issued: June 2023

· Award of contract: September 2023

· Contract Mobilisation: September 2023-March 2024

· Contract start date: 1 April 2024

3. Conclusion and reason for recommendations

3.1 DPSS offer vital provision to support eligible individuals with their DPs to meet their care and support needs.

The Lead Member is therefore recommended to:

1) To approve the re-commission of the Direct Payments Support Service; and

2) Delegate authority to the Director of Adult Social Care and Health to take all necessary actions to give effect to the implementation of the above recommendation including the award of the contract to the successful bidder.

MARK STAINTON

Director of Adult Social Care and Health

Contact Officer: Sam Tearle

Tel. No: 01273 336512
Email: sam.tearle@eastsussex.gov.uk

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BACKGROUND DOCUMENTS

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