Service pressures

As part of our budget setting process, each year we review the service pressures identified within each department.

Summary

The following tables list 2024 to 2025 service pressures by department, with further descriptions of the service pressures under the tables.

Adult social care and health (ASCH) 2024 to 2025 service pressures

Inflation - care provider (PVI) annual fee uplifts

£13,174,000 inflation ongoing.

We are required to annually review our contract fee rates paid to external care providers to ensure that they are set at a level which allows for a sustainable care market. This review needs to take account of the cost pressures facing care providers - generally a mix of wage and price inflation. The National Living Wage has been announced as £11.44 per hour from April 2024 (an increase of 9.8%) and recent inflation pressures are also reflected into the annual fee uplift.

Inflation - catering

£200,000 inflation one-off.

High levels of inflationary pressures are still being experienced in relation to food purchases (mainly care homes).

Core case management system (MOSAIC) revised hosting arrangements

£375,000 ongoing.

Additional contract costs of the core case management system (MOSAIC) for adult and children's social care. This reflects revised hosting arrangements for the system to enhance system stability. This is a continuation and the final year of a service pressure approved in the 2023-2024 budget.

Demographic growth/demand 65+

£1,959,000 reduction (negative pressure) ongoing.

Underlying demographic growth pressures remain in adult care, including an increase in the 75+ population (projected increases of between 2% and 3% over the next few financial years). However, demand for services is affected by charging policies. It is anticipated that the revised charging policy for non-residential care will impact on customer numbers supported by the local authority, with more customers making their own arrangements for care at home.

Demographic growth/demand working age

£1,918,000 increase (pressure) ongoing.

More adults with disabilities are accessing services, together with an increase in the complexity of cases, including for young adults transitioning from children's services to adult care. 

Digital social care record

£168,000 ongoing, £51,000 one-off.

The government's Digitising Social Care Programme officially launched towards the end of 2022. A digital social care record allows for the digital recording and sharing of care information relating to the care received by an individual within a social care setting and is a statutory requirement. We will need to procure a digital solution with a one-off cost for smartphones.

Derbyshire Discretionary Fund (DDF)

£669,000 one-off

The DDF is a financial assistance scheme to residents of Derbyshire who meet eligibility criteria. The scheme has catered for significant additional demand using time-limited COVID-19 funds including the Household Support Fund. A review of the scheme is underway with a view to aligning the level of assistance to the original base budget. The details of the review were reported to Cabinet in January 2024. The one-off funding will allow for a managed response to reduced eligibility and to the implementation of a scaled down scheme.

Children's services (CS) 2024 to 2025 service pressures

Inflation - home to school transport

£1,479,000 inflation ongoing.

To fund the rising cost of bus and taxi contracts as a result of inflation and other changes within the transport market.

Inflation - children's social care

£4,985,000 inflation ongoing.

To fund inflationary uplifts in allowances paid to carers, placement fees and other support services. 

Children's social care demography contingency

£10,000,000 contingency one-off.

The demand pressures on our budgets and the financial pressures associated with this have been highlighted throughout this report. Children's social care, in particular, has experienced significant rising demographic demand for its services in recent years. Whilst children's services has plans to mitigate the cost of the additional demographic demand it has experienced in 2023-24, over and above that provided in the 2023-24 budget, it is possible that these mitigation plans may not be fully effective in countering both 2023-24 demand and forecast 2024-25 demand.

The 2024-25 Revenue Budget therefore includes a one-off £10,000,000 contingency budget, to be funded from reserves, which may only be requested by children's services in exceptional circumstances, should social care demographic demand experienced be unmanageable within the context of the 2024-25 budget. In such circumstances, children's services will be required to request the funding and provide evidence to demonstrate mitigation progress and results. The head of paid service and director of finance and ICT will be responsible for making the decision on the allocation of budgets.

Place 2024 to 2025 service pressures

Inflation - local bus

£1,800,000 inflation ongoing.

The supported local bus network of some 80 services was re-tendered in August 2022 and a significant increase of almost 50% in cost has been experienced due to inflationary pressures. These services are for routes which are not commercially viable and typically in rural communities, evening and weekend services. These costs are being passed onto us as otherwise there would be a risk that the bus operators would withdraw the service and leave large areas of Derbyshire without bus services.

Inflation - waste

£3,608,000 inflation ongoing.

We are a statutory waste disposal authority and have a legal obligation to make arrangements to treat and dispose of all household waste arising across the county. Under each contract for the disposal or treatment of waste, inflationary pressures are passed to us, as is standard for this type of contract. There are a number of different inflation indices used (such as the Consumer Price Index and Retail Price Index), and these are applied to the contracts based on the value of these indices each January.  Inflation has had a significant impact on the cost of this service.

Inflation - business rates

£2,000 inflation ongoing.

To increase the property business rates budget to reflect the 2024-25 increase in the business rates multiplier, which is used to increase business rates.

Countryside structures

£89,000 ongoing, £93,000 one-off.

Following an audit report in July 2023 of the countryside structural assets, a plan is being prepared to address the most urgent structural repair requirements and an inspection schedule developed to monitor all 300+ structures within the countryside service. Funding is required to establish a project engineer post and to undertake these inspections and maintenance on the structural assets.

Highways revenue rebase budget

£5,800,000 ongoing.

As a highways authority we have a statutory duty to maintain highways. Current budgets to deliver this duty were set on an historic organisational structure with an income target that is not achievable with the current level of staff resource. In addition the state of the highways network has been deteriorating for a number of years (a national issue) and severe weather leads to higher maintenance costs. The current delivery model is being redesigned through the Derbyshire Highways Programme (formerly the Future Highways Model) to ensure value for money.

Ash dieback - Via Gellia

£550,000 one-off.

We are currently delivering the Ash Dieback Action Plan to manage this increasingly prevalent tree disease in Derbyshire. A survey undertaken as part of this work has identified a 4.3-mile section of the A5012 Via Gellia road where the ash trees have advanced stages of the disease and action is required to remove them.

Buxton Museum (decant and dry rot investigation)

£215,000 one-off.

Buxton Museum and Art Gallery was temporarily closed in June 2023 following investigations which revealed dry rot in some of the building's structural timbers. The most affected areas have been decanted to allow further intensive investigations to be carried out by experts to assess the extent of the issue. Alternative ways of delivering the service and storing artefacts are being explored to ensure we are compliant with our legal duties around this service. This funding is for delivering the service and/or storing artefacts in 2024-25.

Highways depot maintenance

£1,600,000 one-off.

Planned works to maintain the highways depots has not been undertaken for a number of years, with only emergency works carried out as required. This has led to significant deterioration in the overall condition of the depots. We have a legal responsibility to ensure the depots, as workspaces, are safe for use and fit for purpose. This funding will prevent further asset deterioration and allow continuity of the highways service.

Corporate services and transformation (CST) 2024 to 2025 service pressures

Inflation - business rates

£144,000 inflation ongoing

To increase the property business rates budget to reflect the 2024-25 increase in the business rates multiplier, which is used to increase business rates.

Inflation - property - gas and electricity price

£2,677,000 inflation ongoing.

To increase the budget to pay for the increased cost of energy in line with inflation.

Inflation - property - cleaning and caretaking price uplift

£445,000 inflation one-off.

To uplift the cost of our cleaning and caretaking budget in line with the National Living Wage uplift.

Information, communications technology – EDRM (electronic data records management) system upgrade

£550,000 one-off.

The EDRM system, which supports the safeguarding and storage of around 10 million of our documents, needs upgrading due to end-of-life software and hardware. Of this bid, £150,000 will cover the cost of upgrade and £400,000 will fund annual support and maintenance.

Information, communications technology - telephony

£180,000 one-off.

Replacement of the current telephony contract, which expires in February 2024, with a cloud-based solution. The bid will cover the migration and set-up costs of the new service.

Property - asbestos residue removal

£120,000 one-off.

To fund the removal of asbestos residue within our buildings.

Property - corporate maintenance budget increase

£500,000 one-off.

To fund the day-to-day reactive maintenance of buildings, servicing of boilers, lifts, to ensure compliance with health and safety.

Property - County Hall Winter Gardens remedial works

£265,000 one-off.

To carry out essential health and safety works to the Winter Gardens whilst we await the outcome of wider County Hall proposals.

Property - decommissioning, dilapidations and staff relocations

£500,000 one-off.

To fund relocation of staff, clearing sites of unwanted furniture and equipment, security and other costs associated with the closure of surplus buildings.

Property - glazing surveys

£220,000 one-off.

To fund glazing surveys to comply with legislation Workplace (Health Safety & Welfare) Regulations 1992 (Regulation 14).

Property - Ilkeston Library external maintenance works

£350,000 one-off.

To carry out essential maintenance to the listed building.

Property - planned preventative asset maintenance budget increase

£500,000 one-off.

To proactively look after our buildings (gutter clearing, drainage works) to prevent failure and to ensure that they are water-tight and safe.

Corporate - amortisation of premiums

£279,000 one-off.

Premiums or discounts, incurred on the early repayment of loan debt are taken immediately to the Financial Instrument Account Adjustment (FIAA) reserve. The balance on the FIAA reserve is released as a charge to the General Reserve by spreading the premiums or discounts over the remaining term of the original loan. This is the charge scheduled for 2024-25.