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Collaborating to Secure Greater Funding for Learning Disability Services

Posted on 20 December 2024

Ahead of decisions for Learning Disability Services funding for 2025/26, the Sussex Learning Disability VCSE CEO Group has urged local councillors and NHS and local authority commissioners to grant a minimum 8% fee uplift for learning disability residential services across Sussex to ensure their continued viability and sustainability.

The Sussex Learning Disability VCSE CEO Group consists of eight VCSE organisations, including Southdown. Read the Group’s open letter to commissioners and councillors below.

Overview

The Sussex Learning Disability VCSE CEO Group consists of the CEOs of eight VCSE organisations operating across Sussex. Meeting every two months as a peer network, the group collaboratively addresses key issues affecting the sector.

Our collective mission is to empower individuals with learning disabilities by delivering high-quality, tailored support that enhances quality of life, promotes social inclusion, and facilitates meaningful community participation. We advocate for the rights and needs of those we serve, ensuring their voices are heard and respected.

At our December 2024 meeting, we agreed to issue an updated market position statement considering escalating financial and operational pressures facing the sector. These challenges have been compounded by recent policy changes and economic trends, particularly following the recent Budget.

Context and challenges

Learning Disability service providers across Sussex are experiencing intensifying financial pressures that threaten the sustainability of essential services at a time of increasing demand. Key contributing factors include:

    1. National Insurance Increase:

    • The 1.2% rise in employer contributions and the reduced threshold to £5,000 have significantly impacted payroll costs.
    • As the sector employs a large workforce on relatively low wages, including many part[1]time contracts, these changes are unsustainable without additional funding.

      2. National Living Wage (NLW) increase:

      • The 6.7% rise in the NLW has created additional financial pressure on budgets.
      • While beneficial for workers, the NLW increase disproportionately affects the sector, where many employees earn close to the minimum wage.
      • As a sector, we strive to pay the Real Living Wage where possible (a requirement from some commissioners). This rate has increased by 60p per hour, 5%.

      3. Contract and Provider Viability:

      • Where funding is not linked to individual placements but is via other forms of multi-year contract (e.g. advocacy, support for SEND), without annual inflationary increases it is now placing deliverability of services and organisations at serious risk.

      Together, these changes will significantly increase our staffing costs, even before accounting for inflationary pressures on non-staffing costs such as utilities and supplies.

      Fee uplifts for 2025/26

      Given these mandatory increases in costs, we are requesting a minimum 8% fee uplift for learning disability residential services across Sussex for the 2025/26 financial year. For other forms of service/contracts we seek similar inflationary increases. These adjustments are critical to maintain adequate staffing levels, offer competitive wages to attract and retain skilled professionals and ensure service quality remains high and continues to meet the needs of individuals.

      Without these uplifts

      Providers will face severe financial difficulties, leading to service reductions or closures.

      • Individual placements may become unsustainable, forcing providers to return contracts to commissioners.
      • Providers will be compelled to submit individual appeals for cost reviews to maintain operations.

      We recognise that the Government has tasked local authorities and the NHS with addressing care sector sustainability in their fee uplift decisions for 2025/26. We urge decision-makers to prioritise the needs of the learning disability sector and consider our request for an 8% fee uplift in their planning processes.

      Adjusting fees to reflect these rising costs is essential for sustaining high-quality services and ensuring the wellbeing of individuals with learning disabilities across Sussex. Without this support, the sector’s ability to deliver vital care and promote inclusion will be severely compromised.

      We remain committed to working collaboratively with commissioners and stakeholders to address these challenges and ensure the long-term sustainability of services in Sussex.

      Sincerely, The Sussex Learning Disability VCSE CEO Group
      Neil Blanchard, CEO at Southdown
      Sue Livett, CEO at Aldingbourne Trust
      Warren Fabes, CEO at Guild Care
      Maria Mills, CEO at Active Prospects
      Eva Eriksson, CEO at Grace Eyre
      Sally Polanski, CEO at Amaze
      Hannah Tombs, CEO at Ferring Country Centre
      Will Davies, CEO at Speak Out