Bradford District Care Trust is facing a financial crisis, a review has revealed.

The organisation, which is responsible for mental health and learning disability services, is facing severe difficulties due to pressure on learning disability services and an increase in the number of high-cost, specialist residential placements.

By the end of 2005/6 the trust was £1.6 million in the red but a new forecast has estimated its debts will have grown to almost £5.5m by the end of this financial year.

Despite a number of recovery plans, health bosses have been unable to set a budget for coming years because of the shortfall and they have been forced to ask Bradford Council for extra cash.

Temporary funding of £188,000 a month was approved by councillors in June, subject to a review to see if better value for money could be achieved by returning direct control of services to the Council.

A project team has completed that review and a report will be presented to the Council's Executive on Tuesday, September 19.

The main proposal is for urgent discussions to take place with the Primary Care Trust and Strategic Health Authority to consider the trust's historic and future funding, additional funding and how to deal with its debts.

The Council proposes to continue the partnership agreement with a further review to see how finances and increasing demands for services can be better managed.

Kath Tunstall, the Council's director of social services, said pressures faced by the Care Trust were genuine.

She said: "We have worked closely with the Care Trust, PCT and the health authority. We see ourselves as a partnership working together to deliver better services and resolve the difficulties we face."

A spokesman for the Care Trust said: "We welcome Bradford Council's report on the outcome of the Value for Money exercise - and the benchmarking which was part of it.

"Our top priority is to provide the best possible services with the money available.

"The benchmarking exercise confirmed that the increasing numbers and costs are in line with the national picture, the overall spend on learning disabilities and mental health social care in Bradford is low and costs of delivering learning disability services are significantly lower in Bradford. This suggests the service is being delivered as efficiently as possible. "

A spokesman for Bradford and Airedale Primary Care Trusts said: "It is clear that there needs to be a review of the financial and commissioning arrangements which support the Care Trust in its vitally important work.

"We welcome this report and will study its detail and explore its implications with our partners."

e-mail: claire.lomax@bradford.newsquest.co.uk

WHAT THE TRUST CAN DO
  • Bradford District Care Trust, which is funded by primary care trusts and Bradford Council, was one of only four flagship organisations created in 2002 as part of the Government's modernisation programme.
  • For the first time it brought under one organisation mental health and learning disability services, which had previously been provided separately by social services and health trusts.
  • Difficulties with this new and complex arrangement are contributing to the funding shortfall.
  • A dispute over the costs of pension contributions is responsible for £550,000 and a further £743,000 relates to the transfer of costs from health to social care.
  • Additional costs for repairs and maintenance of trust buildings requires £350,000 and a reduction of £750,000 in the Supporting People Grant, a Government grant to help people live independently, has had significant impact.
  • The Council review found very little room for efficiency savings and concluded services required additional funding and/or a reduction in services.
  • Care Trust proposals have identified £700,000 of savings and if the Council's Executive approves increasing charges and raising the threshold where people can access services, an increase in income of £170,000 a year would result.
  • Better commissioning could bring in savings of £120,000.
  • The Council could also agree to continue its increased level of funding of £188,000 a month and a case will be put before the Department of Health to pick up the superannuation costs.

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