The plan to transfer seven Department of Health programmes to the Social Care Institute of Excellence has collapsed amid a war of words.
Although Scie and the DoH both admit that the deal was scuppered by a conflict arising from the institute's desire for independence and the department's insistence on retaining influence over the programmes, there is agreement on little else.
Health minister Stephen Ladyman said the institute had "blown" a chance to raise its standing and said it had always known - and originally agreed to - the influence he wanted over the programmes.
However, Scie chief executive Bill Kilgallon said the opportunity had been withdrawn by the DoH, which had "changed its view on the process" while Scie had stood firm.
He added: "I have respect for Stephen Ladyman. I'm very disappointed that he has been given that briefing by officials in the department which doesn't tally with our understanding of reality."
The collapse of the plan to set up a care services improvement partnership under Scie, including the National Institute for Mental Health in England and six other schemes, again raises the question of the status of social care within government.
Ladyman had portrayed the merger of the programmes into a Scie-led partnership as a way to boost the standing of social care.
The roots of the breakdown date to the failure to appoint a national director for the partnership after the post was advertised last November.
Ladyman claimed Scie had "unilaterally" changed the agreed job description. But Kilgallon said Scie had suggested revising it only after the panel - which included Scie and DoH representatives - had failed to find a suitable candidate.
"The only unilateral action has been by the DoH in not wanting to continue with the proposal," he said.
Ladyman said he would introduce proposals to merge the programmes separately from Scie.
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