Social care company could save council £500,000

Oldham council cabinet
OLDHAM Council has outlined plans for a new company to provide social care services for its most vulnerable residents.

It wants to set up a trading arm for services such as homecare and daycare for the elderly and adults with disabilities and mental health problems.

The move could save £500,000 at a time when increases in social care funding from the government have not kept pace with the rising numbers of older and disabled people. This means that many adult social care departments are unable to balance their books.

The council spends £15 million on adult social care and employs more than 400 people in the sector.

The trading arm would operate independently of the council with the majority stake owned by the council and a minority stake by an employee co-operative.

The council says this would provide a better choice of services, with any places not taken up by Oldham residents sold to other people to make money.

Councillor Phil Harrison, cabinet member for adult social services and health, said the move would provide more job security for existing staff and improve services.

Currently one third of care services for older people are provided by the local authority and two thirds commissioned from the external sector.

Ann Sergeant, a branch convenor with the GMB union, told the Chronicle: “The unions are in consultation with management regarding the trading arm.

“Unions have requested more information regarding this; however we have not received anything so far.”