Inverclyde children and families services face £4m overspend

Most of the projected £3.893m overspend is on external residential placements, according to officials, though other services provided by the area’s children and families team are also expected to spend more than their budget by the end of the 2024-25 financial year.

But savings in pension payments totalling more than £3m are to be used to plug the gap.

The report, prepared for a meeting of Inverclyde’s social work and social care scrutiny panel, says that overall, social work services are on course for a total overspend of £246,000.

‘Client commitments’ account for most of the projected children and families overspend, with the total of £3.361 million comprising £1.7 million on external residential placements and £661,000 on fostering, adoption and kinship.

Supported living accounts for £123,000 of the forecast overspend, while home care, respite, direct payments and additional support are projected to be over budget by £860,000.

However, the projected overspend is almost £600,000 less than when the service’s financial position was last reported to the panel.

Panel members will meet at Inverclyde Council HQ to consider the latest report. (Image: George Munro) The report states: “The reduction is as a result more of favourable placement end dates than anticipated, alongside changes in placements required following returns to mainstream education.

“A review group will continue to meet regularly to closely monitor these placements throughout the year to ensure a focussed approach on placements and the associated financial implications, with a view to management action bringing down the overall costs.”

Other social work services on course to spend more than their budget are those for people with learning disabilities (£296,000), homelessness (£104,000) mental health (£8,000), and the area’s alcohol and drugs recovery service (£2,000), while spending on planning, health improvement and commissioning is expected to be overspent by £14,000.

Most of the £3.893m is offset by an underspend of £3.063m in ‘corporate director’ services, including business support, with the report stating that non-recurring pension monies, totalling £3.1m, “will be used in full to offset the overspend currently projected in children and families”.

Underspends are also expected in older people’s services (£871,000), assessment and care management (£66,000), criminal justice (£51,000) and physical and sensory services (£20,000).

Panel members will consider the report when they meet on October 29.