Interim Leadership Services: Case Study
Transforming Social Care Commissioning – A Financial Overhaul
Introduction
A local authority faced significant financial management challenges in its Adult and Children’s Social Care services. A lack of governance structure and effective budgeting system led to unreliable forecasting and serious cash flow challenges. Budget fluctuations of up to £5 million created persistent inaccuracies with service providers experiencing repeated payment delays while the council struggled to collect client contributions in line with legal requirements.
A commissioning project was set up to diagnose and resolve key inefficiencies, and quickly established that late data entry and inadequate financial controls resulted in substantial uncollected debt and prolonged payment delays, often stretching for months or even years. Tens to hundreds of thousands of pounds remained outstanding at any given time with some providers resorting to credit cards to pay staff wages due to delayed council payments. This weakened the local care market and increased service costs, while returned care packages led to urgent service gaps.
The Solution & Process
The council established a large-scale 18-24 month transformation programme, led by an interim Programme Director with a series of interconnected projects each overseen by a Senior Responsible Owner. A dedicated payment team was formed to restructure payment processes and cleanse financial data. Authorities involved determined their scope—whether to address net costs, gross costs, Adult Social Care, Children’s Services, or all aspects simultaneously. This council opted for a comprehensive approach.
The Programme Objectives
The primary objective was to create a system that paid providers accurately and on time. Establishing financial stability and good governance was a priority to enable the council to forecast costs effectively and budget with confidence. By implementing structured processes, the council aimed to restore provider trust, strengthen financial management, and secure a sustainable future for social care services.
Two fixed-term employees, introduced on results-based contracts were allocated to the programme, as well as internal resource including dedicated time from senior directors. Several heads of service and a team of project managers handled multiple responsibilities while contributing to the project’s progress.
An initial programme budget of £750,000 was allocated across the two-year transformation programme. With more leadership involvement and agile decision making, the initiative could be completed within a year. The Director overseeing Adults Social Care played a critical role as the driving force behind the programme, implementing necessary changes effectively.
Outcomes
Beyond resolving the immediate challenges, the council aimed to increase resource efficiencies. Without the programme, 124 full-time employees would have been needed to manage outdated processes. A 12 percent reduction in workforce costs would be enough to cover the programme’s expenses and put the council on track to deliver greater efficiencies over time. The clear longer-term benefits included improved payment accuracy, stronger provider relationships, and sustainable cost management.
If your council is facing challenges in financial governance, provider payments, or commissioning strategy, our Local Government team can help.
Contact Frazer to discuss how we can support your leadership and transformation goals.
Email: localgovernment@gatenbysanderson.com