Examples of Public Sector outsourcing

Examples of Public Sector outsourcing

Examples of Public Sector Outsourcing to Social Enterprise

1. Sandwell Community Caring Trust

Key Facts: 
    
- Established 1997
- £10.5m turnover
- 500 Employees
- Core Service: Residential and respite and day care for children and adults. Supported living and domiciliary care.

Synopsis:

In the mid-1990s, Sandwell Metropolitan Borough Council needed to reduce its social care budget by over £8m and a range of highly valued services were in danger of being closed down. Against this background, Sandwell Community Caring Trust was set up with the aim of: providing existing services more cost effectively while improving quality; providing well-remunerated, stable employment for
former council employees; finding alternative sources of capital funding for the replacement of poor quality care homes; and developing new flexible services.

Over the following ten years the trust consistently proved itself capable of improving the performance of previously council-run services, and its success has led to other services being transferred across as well as the development of a range of services from scratch.

Outcomes:

- High quality user focused provision
- Lower running costs than LA in-house provision
- Where it cost the local authority £657 per person per week to provide adult residential care, SCCT can provide outstanding quality care for £328.
- New services developed
- Increased turnover on frontline provision (62% in 97 to 85% in 08)
- Staff turnover of less than 4%
- Average sickness days dropped from 22 per annum to 0.3 per annun

2. Southampton Care Association  (SCA Group)

Key Facts:

- Established 1991
- £10m Turnover
- 600 Employees
- 2460 Service users
- Core Service: Care Services, Community Transport and NHS Dentistry

Synopsis:

In 1990 Southampton CVS was delivering a small number of transport and day-care services but spotted an opportunity for a local third sector organisation to get more heavily involved in service delivery. As a result, in 1991 it formed SCA Community Care Services with the organisation taking on the contracts the CVS had previously held but made the decision to focus on homecare services in particular. An approach was made to its local Health Authority for a small amount of development money, with a promise never to come back asking for more, and the company was given £90,000 to get going.

SCA’s first contracts were from Southampton SCA’s first contracts were from Southampton City Council, soon followed by Hampshire County Council, Bournemouth City Council and a number of other local authorities across the south coast and by 2000 it had a £4m turnover and 400 employees.

In response to a gap in dental provision in the area SCA, in partnership with the PCT has established 6 dental surgeries and is currently in discussions with the General Dental Council to become a ‘Dental Body Corporate’.

Outcomes:

- SCS make over 30,000 care and support visits to people living at home.
- They provide over 20,000 days out for people in need
- They provide 40,000 people with access to NHS dental care
- SCS currently derives 99% of its income from trading

3. Sunderland Home Care Associates (SHCA) and Care and Share Associates (CASA)

Key Facts: 

- Established in 1994
- Turnover of £6m
- 500+ Employees
- 2000 Service users
- Core Service: Provision of quality home care

Synopsis:

In 1994 Sunderland Home Care Associates was established and an initial contract for 450 weekly hours of care from the council enabled the business to recruit its first 20 employees. Over the next six years SHCA grew steadily, winning increasingly large contracts from the council for the provision of domiciliary care. During this period, the board took the decision to adopt a new, more strategic approach to growing the business. Significant effort was put into diversifying the company’s customer base and exploring potential new markets, and SHCA has since won a range of new business from the University of Sunderland, further education colleges, private clients and others, including the provision of academic support services, ‘bank’ staff for respite care, care for disabled children and one-to-one support for autistic individuals.

In 2004, Care and Share Associates Ltd (CASA) was created to replicate the SHCA business model across the UK. CASA provides development and support services to independent ‘satellites’ linked together in a federal structure. The project has successfully been replicated 4 times across the north of England

Outcomes:

- The programme is employee owned
- High standards of care and support
- Focus on employing local people
- Developed a project ethos that can be replicated
- Awarded Best of the Best Award for social enterprises in the North East of England

4. Burnley Campus Social Enterprise

Key Facts:

- Established 2008
- Core Service:  Community based campus including a :- 6th Form College, Primary School, Special School, Nursery School, Day Care Centre and a Public Library

Synopsis:

A pioneering project which is being held up as a "euphoric example of a successful social enterprise" for schools across the country. The Burnley Campus Social Enterprise, which brought schools and community partners together to make activities and services accessible to people, is seen as a good way forward when government funding for extended school services ends next year.

The not-for-profit company which includes Thomas Whitham Sixth Form, Barden Primary School, Holly Grove School, Reedley Hallows Nursery and Children's Centre, Burnley and Pendle Faith Centre and Lancashire Library two years ago under the Building Schools for the Future initiative with the aim of delivering a high level of exciting and affordable activities and services, to support children, young people and the local community to be happy and healthy, and make an overall positive contribution to the whole community.

Outcomes:

- Financially Sustainable
- Profits put back in to extending and improving service delivery
- Model of best practice
- Links school to the community
- Provides excellent facilities to a deprived community
- Creates local employment opportunities

5. Celtic Community Leisure

Key facts:

- Established in 2003
- Employee owned
- 200 permanent employees
- £5.5m Turnover
- Core service: To run leisure services in the Neath Port Talbot area

Synopsis:

Established to manage leisure facilities for NPT Council, CCL now manages 9 leisure facilities. The project is set up as an Industrial Provident Society that is employee owned and let.

The project retails its public sector ethos but now has private sector freedom and flexibility to extend services, attract more customers and therefore maximise its income and reduce its dependency on council funding.

Outcomes:

- Part of a growing network of “not for profit” organisations delivering leisure facilities
- A member of Sporta who are a membership organisation for the above.
- Committed to delivering high class, affordable facilities.