Charity Scraps Support For Learning And Housing Deal

A leading charity which provides support for people with learning disabilities has been forced to terminate a council agreement because of insufficient funding. The move by Ark Housing Association, which has been working with Aberdeenshire Council, follows a similar decision earlier this year by Turning Point in Glasgow and highlights a growing crisis in the voluntary sector.

Cornerstone, one of the largest charities in Scotland, is also facing a substantial deficit this year because councils refused to increase funding to take account of increased costs and inflation.

Ark confirmed it had given Aberdeenshire Council three months notice of termination of an agreement under which it provides supported living and care services in Portlethen, Inverurie, Peterhead and Macduff, saying losses had become unsustainable.
It will affect more than 50 vulnerable people and around 100 full and part-time staff who support them for up to 24 hours a day in their own homes.

Bill Duncan, chairman of Edinburgh-based Ark, said: “Our management committee took this decision unanimously – though with extreme reluctance – following protracted negotiations. As a not-for-profit organisation, committed to our clients, we were desperate to find a solution. We are continuing to take steps to reduce costs but there comes a point when we simply cannot go on losing very large sums of money.”

This is the first time in its 29-year history Ark has served notice on an agreement with a local authority. It provides housing and support for more than 350 people in 30 communities throughout the east of Scotland, working with 13 local authorities.

“One of our fundamental aims is to promote independent living for people with learning and other disabilities, which is a national policy,” said Mr Duncan. “Our concern – and the concern of other providers – is that the funding is not there to achieve this.”

Nick Baxter, chief executive of Cornerstone, said the Scottish Executive claimed to be committed to ensuring voluntary organisations were fully funded for the services they provided on behalf of the state. “Sadly, this has never been implemented by local councils which have, year-on-year, eroded the funding for vital care services provided by the voluntary sector. A crisis in voluntary sector care is fast approaching.”

Community Care Providers Scotland (CCPS), the national association with around 60 members from large voluntary sector organisations providing services in Scotland, echoed this view.

Nigel Henderson, CCPS convener, said: “Many providers are finding it increasingly difficult to meet the full costs of providing a service with the funding received from local authorities. CCPS is aware of two organisations whose inability to secure full cost recovery has forced them to surrender contracts for services which they developed. Our concern is that service users will experience significant disruption to their lives because of funding issues that are not of their making.”

Richard Baker, Labour MSP for north-east Scotland, said he had asked the chief executive of Aberdeenshire Council how provision of these services would be maintained.

An Aberdeenshire Council spokesman said: “On 18 September, Ark served notice to terminate its contract. The council moved quickly to seek alternative providers and a timetable for recommissioning was put in place. More than 30 organisations have registered an interest.”