Norfolk County Council

    Living Well: Homes for Norfolk

    Accelerating the delivery of extra care housing

    Client:
    Norfolk County Council

    KEY OUTCOME

    To support the development of an extra care housing programme that would also act as a vehicle to engage with a wide range of partners in its development and subsequent deliveryhelping to shape the care market.  

    Project Objective

    The objectives were to:  

    • Establish an evidence base concerning current and future supported housing need that is endorsed by, and available to a range of key stakeholders including, Norfolk’s planning/housing authorities, existing and potential providers of accommodation and care, including housing associations and private sector providers 
    • Develop a business case for investment in supported housing that will be endorsed by NCC’s Adult Social Care department 
    • Set out a five-year delivery plan, including proposed budget that is endorsed by the Adult Social Care department. 

    Summary/Overview

    The Norfolk County Council vision is “to support people to be independent, resilient and well.”  The Council’s Adult Social Care department has specific responsibility for providing care and support in specialist accommodation and in people’s own homes.  We were commissioned in 2018 to support the development of an extra care housing programme that would also act as a vehicle to engage with a wide range of partners in its development and subsequent deliveryhelping to shape the care market.  NCC was, like most local authorities, experiencing shrinking revenue and increasing demand for services.  At the same time the council needed to respond to changing expectations and aspirations of how care and support is delivered. 

    Project Impact

    We established that by 2028, Norfolk will have a population of approximately 261,000 over the age of 65 and require 3,540 Extra Care homes across all tenures.  698 units were already in development, leaving a target of 2842 to be completed by 2028, and we established that 1135 should be affordable.

    We identified barriers to delivery and recommended solutions to address them. This work involved meeting a variety of internal and external stakeholders in the extra care housing market. 

    Our resulting business case was endorsed to encourage and accelerate the delivery of extra care housing in Norfolk:

    • On privately owned land, setting up a capital grants process to support the development of extra care housing.
    • On publicly owned land, following the most appropriate process when bringing forward extra care schemes. This may include the establishment of a developer/provider framework or individual procurement process depending on the source of the land and stakeholders involved
    • Care and support services for extra care are to be commissioned via the direct payment model for planned care, maximising client choice and control and minimising NCC overhead.  Where clients do not wish to have a direct payment, the care will be commissioned by NCC through the on-site care provider. 

     

    We set out a ten-year delivery profile (with a proposed budget), endorsed by Adult Social Services.

    The endorsed business case released up to £29m of capital investment over the life of the programme, and programme delivery costs of £150k per annum .

    Once completed the programme will deliver circa £4.1m gross revenue saving per year, through preventing admissions to residential care.  (These savings were calculated against the delivery of the affordable housing units only.) 

    • For each affordable unit of extra care occupied NCC will save £3,660. (This revenue savings figure is derived by factoring in the variation in care costs across residential care and domiciliary services.) 
    • The net savings for the council will depend on the level of subsidy required to bring a scheme to fruition. A range of £15,000 to £25,000 of subsidy per affordable unit would deliver net savings to the council between £1,880 and £2,520 per affordable unit, taking into account 5% voids and capital financing costs (interest and minimum revenue provision).  Once the capital was repaid, the savings would revert to £3,660. 

    Key Facts

    • Demand for 2842 extra care housing units by 2028 
    • Demand for 1135 affordable housing units as part of above 
    • Gross revenue saving to Adult Social Services per affordable housing unit per annum: £3660 
    • NCC-funded capital grant subsidy per unit: £15,000-£25,000 
    • Net revenue saving to Adult Social Services per affordable housing unit per annum: £1880-£2520 
    • Once capital repaid, net saving to Adult Social Services reverts to: £3660 
    • Commissioned in 2020 to produce an acquisition partner scoping report to further support the programme. 

    Testimonial

    “Without Inner Circle, we would not have an extra care programme.  Having Inner Circle develop our extra care programme business case ensured we had a product that was well informed with planning and development expertise.  They were instrumental to the programme’s success and meant that we were well informed on the challenges development brings and how to address them – not a typical skill in Adult Social Care.”Gary Heathcote, Director of Commissioning , Adult Social Care 

     

    Awards

    Our work on Independent Living programmes continues to receive national recognition. We were recognised at the 2016 national planning awards, in the 2017 LGA publication Housing our Ageing Population, and most recently at the 2018 Management Consultancies Associations award for managing change in the public sector.

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