To seek Cabinet approval to tender for the provision of advice and support for Personal Independence Payments (PIP) Claimants.

The Head of Finance sought approval to tender for the provision of advice and support for Personal Independence Payments (PIP) claimants.

He reported that the corporate risk register had recognised the risk of the implementation of welfare reform to the delivery of the Council’s aims and objectives.  The risk score of 18 out of a maximum of 24 is one of the most substantial faced in the delivery of the corporate plan.  He stated that the finance service plan for 2016-17 included a goal to “work with other areas of the council to explore and implement further opportunities for joint working and/or commissioned services between finance service and the third sector”.  Mitigating Welfare Reform was identified as a key area for joint working/commissioned services and a working group was set up to develop this. 

He reported that the working group had found a clear and compelling case to provide targeted support for PIP claimants.  A tender had been developed to deliver advice and support for current recipients of PIP and Disability Living Allowance (DLA) and new claimants of PIP.  He informed Cabinet that one off funding of £500k had been set aside in an earmarked reserve for an eighteen month tender period with a value of £150k with an option for the Council to extend for a further period of a year.  The tender would commit up to 50% of the available funding, leaving the remainder to be targeted towards emerging need as the roll out of universal credit continues. 

He stated that the tender would not create a need for recurrent expenditure and the tender would set a target return of at least £5 in annual benefit awarded for every £1 of tender value.  A full contract value of £250,000, including extension, would equate to supporting household income of £1.25 million for local residents.  As such, the tender was expected to contribute towards supporting a successful economy, as well as reduce demand for council services; in particular those linked with household debt such as housing and council tax arrears.        

The Deputy Leader in commending the proposal for the proposed procurement stated that the tender was necessary due to welfare reform being a significant risk to the Council.  He stated that the proposed procurement would ensure that those citizens who are in need received the support they need.  The Cabinet Member Communities in welcoming the report stated that the proposal would help the Council in supporting the most vulnerable of citizens who were placed under increasing hardship.  The Leader stated that the procurement was necessary due to the shift in claimants from DLA to PIP which posed risks to the Council.  He was pleased to see the Council helping individuals receive the support they are entitled to receive. 

RESOLVED:            That Cabinet:

(1)           Noted the information contained in this report in relation to the business case behind the proposed procurement;

(2)          Approved the proposed procurement, up to a maximum value of £250,000 (including extension) to be funded from earmarked reserves; 

Delegated authority to the Head of Finance to decide whether to award the contract extension at the appropriate time, based on successful delivery of the outcomes during the initial contract duration.