A care company will have two years to break even as the Isle of Wight council agreed to keep it in-house, but withdraw its £550,000 subsidiary.
Wightcare, owned by the Isle of Wight council, will have to find a financially viable way forward to support the 2,100 Islanders it cares for.
Costs £1,572,000 to run
The service costs £1,572,000 a year to run and while two-thirds of its costs are covered, the council uses taxpayers’ money to subsidise the remaining unpaid balance.
This year, 2021/22, the authority will foot the nearly £550,000 bill.
Price rise should raise £101,000
It follows a 13 per cent rise in fees earlier this year, which the council hoped would generate a further £101,000.
However, demand has reduced, with 92 customers leaving the service.
Operate in a more business-like way
An independent review determined the council could not continue to increase fees alone, but should look at how resources are deployed and operate in a more business-like way to increase growth and minimise costs.
The council’s cabinet had to decide whether to retain the service, outsource it to the private sector or create Wightcare as a trading company.
A two-year cost recovery model
It was unanimously agreed to keep the service in-house, but develop a two-year cost recovery model, starting from April, to achieve the breakeven position.
Speaking at the meeting, Cllr Karl Love, said it was recognised there had been some shortfalls in Wightcare, but they were trying to reduce them.
He said Wightcare was an important service as it allows people to live independently in their homes and helps reduce the pressure on the NHS as it keeps people out of hospital.
Keeping in-house service poses the least risk
It was thought keeping the service in-house would pose the least risk and allow the council greater control and quicker responses.
A transformation plan including a service redesign, offer review and enhanced marketing will now take place.
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which News OnTheWight is taking part in. Some alterations and additions may have been made by OnTheWight. Ed
Image: National Cancer Institute under CC BY 2.0
