News story

Social care PFI initiative

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The private finance initiative (PFI) procurement method may also be used by local authorities (LAs) for the development of adult social care…

The private finance initiative (PFI) procurement method may also be used by local authorities (LAs) for the development of adult social care. The award of PFI credits supports PFI in LAs.

It is initially awarded as a notional lump sum to cover all capital costs, and then is actually paid in the form of an annuity to LAs alongside their central grants. It follows the principles of PFI that apply in all other areas, which is that the private sector partner carries out the design, build, financing, operating and maintenance of the build, with payment from the public sector when the building is commissioned, using a payment mechanism that is based on performance and availability standards.

Social Care PFI Projects 2011 onwards
Gateway reference 16011
Following MS(CS)’ announcement on Monday 11th April 2011, four social care PFI projects will continue to receive PFI credit funding. These projects are:

Hammersmith & Fulham
The LA proposes, in conjunction with the PCT, to develop a Collaborative Care Centre in the White City area. The new centre will house integrated services for learning disability, physical disability and a community mental health team, alongside up to 15 GPs and a range of primary care services.
PFI credits awarded: £4.4m

Three Extra Care sites, providing a mixture of general, respite and dementia care, combined with a primarily residential development of seven centres for elderly people (including dementia care), and people with learning or other mental disability, totalling about 200 beds. It will include communal health facilities including treatment rooms that can be used by visiting healthcare professionals to support the care of those with long-term conditions; for District Nurses to use as a base for changing sterile dressings, administering flu jabs etc, chiropody, opticians, as well as a GP satellite surgery. It will also include facilities to support telehealth/telecare.
PFI credits awarded in principle (yet to be confirmed by HM Treasury): £84m

Leeds (Holt Park)
An Adult Social Care Community WellBeing Centre, part of a larger development at Holt Park which includes a new school and which has planned Extra Care accommodation for elderly people. It includes sports facilities as well as social care services.
PFI credits awarded: £32m

Sandwell (approved by HM Treasury in Jan 2007)
A sports/leisure centre where priority will be given to disabled adults receiving social care services.
PFI credits awarded: £15m

DH has no plans for any future social care PFI credit bidding rounds.

For further information please email Susan Peak.