- Conference
- 2022 Community Conference and Seminar
- Date
- 2 November 2021
- Decision
- Carried
Conference notes the publication in July 2020 Liverpool City Council’s report in conjunction with UNISON North West, the University of Kent, and the Association of Public Service Excellence (APSE): “Who Cares? Reinventing Adult Social Care” which examines the case for the in-sourcing of social care and adds to the debate around this issue.
This report highlights that the principal argument used against insourcing adult social care is that local authorities cannot afford to do it and the private sector can provide a cheaper and affordable service.
This argument rests on “the smoke and mirrors of financialisation” and as demonstrated in the report Liverpool City Council, like others, could afford to insource a significant portion of the contracts currently outsourced to the private sector.
Conference further notes that this report demonstrates that private social care costs us more than public provision in some key areas including: tax evasion, low pay and the procurement, commissioning and managing of contracts.
Research by the Centre for Health and Public Interest based on a forensic analysis of accounts of care homes has indicated the depth of the crisis resulting from private equity ownership: overall, of a total annual revenue of £15 billion, 10% (or £1.5 billion) leaks out of the sector in rent, dividends, interest, debt repayments and management/directors fees. Their research analysed the accounts of 830 adult care home companies, including the 26 largest providers. Between them they represented 68% of total estimated annual revenue to the sector.
The leakage of £1.5 billion is an average figure for all care home companies in the study. For private equity owned care homes, 16% of the weekly fee per bed is paid in interest costs alone i.e. interest on the debt taken on by private equity to buy the care homes. In addition, of the seven largest for-profit care home chains, between 15% and 32% of their annual income is spent on rent, this compares to the eight largest non-profit chains which spent 2% of their annual income on rent.
The private equity owned care homes generally have complex corporate structures, with profits hidden in management fees, lease agreements, interest and purchases from related-party companies. In addition, four of the five largest care home chains owned by private equity have owners based in tax havens.
Conference additionally notes that in Salford, the City Mayor Paul Dennett’s gave an election commitment to explore the direct delivery of all public services. Making good that commitment and the recognition that social care must be a priority area for consideration a Commission to examine the issues has been established. This Commission comprises the City Council, UNISON regional and branch representation, the Association of Public Service Excellence, Professor Lydia Hayes and crucially two frontline care worker UNISON activists. It is this model of co-production and inclusion that informs decision making and provides an example of good practice.
Ultimately, the potential for local authorities to provide higher standards of care and to adhere to the requirements contained within the fundamental standards contained in CQC guidance lies with their ability to take responsibility for the basis upon which care workers are employed.
It is by paying attention to the strong links between care quality and job quality that local authorities have the potential to secure true value for money from their funding of care and support services and improve the working lives of care workers.
For many of our Community members, the in-sourcing of adult social care contracts back to local authorities would potentially drive up standards, ensure decent pay, terms and conditions and job security.
Conference therefore calls on the Community Service Group Executive to:
a) Continue to work with the National Executive Council (NEC), Local Government Service Group Executive and other appropriate stakeholders such as UNISON’s Social Care Steering Group to examine the case for in-sourcing of adult social care and to formulate a position reflecting the existing policies of Community Conference which reflects the national bargaining agenda of Community members within this sector.
b) Work with UNISON Labour Link and other stakeholders including lobbying political parties in positions of power and influence in Scotland, Wales and Northern Ireland to promote the need to secure appropriate levels of funding to secure the future of adult social care.
c) Continue to work with civil society partners and lobbying/campaigning organisations such as the Future Social Care Coalition to advance the objectives contained in this motion.