Make social care an economic ‘engine’ of the West Midlands

Press release for our inclusive economics & social care report with New economics Foundation – launched today

Social care may be on the brink of crisis but the sector has the potential to become a driver of the West Midlands economy.

A report for Localise West Midlands as part of the Good City Economies programme, has called for a re-framing of the sector, away from large-scale providers towards community and cooperative care models.

Prioritising and promoting community-scale care provision could transform the sector, creating high quality jobs and improving standards of care across the region.

Following calls by the new mayor of West Midlands Andy Street for greater diversity in the provision of all public services, this timely report sets out the benefits of a more localised social care system.

The report, Social Care as a Local Economic Solution in the West Midlands, was scoped by a group of organisations active in the region on inclusive economics and social care.

Social care is a ‘dysfunctional system dominated by “too big to fail” companies’, the report says. For while the ‘big five’ care providers appear to offer lower costs, almost a third of their spend goes to shareholders.

Data cited in the report shows that the UK’s five biggest chain social care companies offer big returns to investors, taking up 29% of their costs —the second-biggest drain on expenditure after staff wages.

It calls for the West Midlands Combined Authority (WMCA) to prioritise new models of care and establish a community care innovation unit.

Community-led care providers tend to keep money in the local economy and offer more personalised care for the same cost. A regional ecosystem of smaller-scale care businesses, such as West Midlands-based Crossroads Care, could ensure public investment in social care is re-invested in communities.

This re-framing of social care models a new approach to local economics, one that is aligned with the assets and needs of communities rather than focused on economic growth and inward investment. This ‘foundational’ approach to local economies could be extended to other sectors such as housing, food and utilities.

David Powell, subject lead at the New Economics Foundation and author of the report, said, ‘Social care is on a cliff-edge. New ideas are desperately needed. The West Midlands can transform the perception of the care sector in the region: a growing economic sector with the potential to meet a diversity of skills, employment and economic needs for communities that aren’t helped by GVA-driven economic strategies.’

Localise West Midlands, who commissioned the report said: ‘The West Midlands coordination role and the election of its first Mayor – who has committed to not-for-profit models of public service provision – places it in a unique position of leadership.

‘The region has an opportunity to be visionary if it understands how sectors like social care can provide careers in places where people live meeting local needs. To deliver its commitment to inclusive prosperity the WMCA will need strategies like this based on real local needs and assets, and to create an economy in which we all have an ownership stake.’

 

Notes:

Social Care as a local economic solution for the West Midlandsis part of the Good City Economies project, a partnership between New Economics Foundation and Centre for Local Economic Strategies, with funding from Friends Provident Foundation.

Localise WM works towards local supply chains, money flow and ownership for a more just and sustainable economy and will be focusing on policy opportunities such as this at the regional level over the coming years. Its work on this has been funded by the Barrow Cadbury Trust.

Download the report here

 For more information contact:

 Author and primary contact:

David Powell: David.Powell@neweconomics.org

 Co-ordinator of Localise West Midlands:

Karen McCarthy: karenm@localisewestmidlands.org.uk

@localisewm 0121 685 1155

Good City Economies: @GoodCityEconomy

 

Notes:

Localise West Midlands: http://www.localisewestmidlands.org.uk

Good City Economies: https://newstartmag.co.uk/good-city-economies/

A People’s Plan for the West Mids? Worth a shot, but needs the people

While we and some other organisations in Birmingham have been busy forming the Civil Society Forum to provide a voice for civil society into the workings of the new Combined Authority, Hodge Hill MP Liam Byrne has been trying to do something a little similar via a deliberative democracy process he’s called the People’s Plan.

peoplesplan2The website says “We want to work together to give the politicians a plan that we think will make a difference. So: pitch in. Give us your ideas for what needs to change!”

It provides a forum and stepped process for people to propose, comment on and discuss ideas to influence what the Mayor might see as priorities. So far, a fair range of proposals have been put forward – some strategic, some a bit less so.

It also says “The Metro Mayor will be elected to control big budgets and make big decisions. They’ll play a big role in shaping the future of where we live.” But looking at the content of the Mayoral Powers consultation on the WMCA website, it looks as if WMCA governance could end up being an odd hybrid of the Mayoral role and collective decision-making. I’m all for collective decision-making rather than the current obsession with macho  individual leadership, which is why I was sceptical about the proposal of a Mayor for Birmingham – but how effective will it be to try to combine the two, potentially leading to a constant power struggle between factions of Leaders and the Mayor?

Either way, we really need to help those in charge of forming this subregional tier to help themselves by involving civil society, because so far there’s frankly not been enough participation. The People’s Plan format certainly has its merits for this – it’s based on open source deliberative democracy tools from DCENT, and, for better and worse,  is free from the ongoing collaboration commitment that our Civil Society Forum needs, enabling people to contribute freely as and when they can. But it’s only going to be as useful as the ideas that are brought together in it, the breadth and depth of its debate, and the diversity of the voices that contribute. As the website says “The more people who participate, the more legitimacy and impact our work will have.”

So let’s promote it, engage with it, suck it and see.

Karen Leach

Roundtable meeting: Shaping the Combined Authority’s economic agenda

We are organising a West Midlands Civil Society Forum roundtable meeting to discuss and influence how the Combined Authority’s economic agenda can best meet the needs of all communities and neighbourhoods. This will be on Thursday 9th June at 4pm in Birmingham. Venue to be confirmed. It is open to all interested civil society organisations in the area – although as a roundtable meeting there are limited places.

As background – we have been involved in establishing a West Midlands Civil Society Forum, to provide a voice for civil society into Combined Authority decision-making. We are at early stages – with positive noises from the Combined Authority about our role – and are seeking new organisational members. For more information and to join the wider Forum, click here.

Although still in embryonic form, the Forum is establishing working groups on issues that the Combined Authority will be addressing, and is aiming to engage as much of civil society as possible in these discussions. This roundtable is part of that process: as an immediate outcome its results will be summarised in a short statement and fed into the Combined Authority leadership to be taken into account in its decision-making. In the longer term we hope to establish an economics, training and development working group to continue engagement with the Combined Authority.

If you’re interested in attending, please email karen@localisewestmidlands.org.uk telling us what civil society organisation you represent and we will let you know if there are still spaces.

If you can’t make the meeting, but would like to contribute to our thinking, please send us an email with your thoughts and we will feed this in and keep you informed. And don’t forget you can join the wider forum as above.

Karen Leach (LWM) and Ted Ryan (RnR)