Mithran, I disagree that the tension here is the personalisation agenda. In this case the key factor is cost and alleged savings.
Scenario
If provider only paid £10 per hour and staff costs amount to 80% of expenditure costs, that is £8.00 per hour and on-costs are 20% then most support staff can be paid is £6.66 per hour or an annualised salary of £12,800 based on 37 hour week. What experienced support worker can be employed on such a salary? Can a house be bought in Cornwall on such a salary? I could go on along the lines that paying peanuts attracts monkeys, etc., and even ignore the fact that many support providers have to pay far more than this to agency staff etc. All of these show the futility of this idea in financial terms vis-a-vis likely service and service quality.
Personalisation agenda and IBs? Where will individuals in need of support find suitable support staff willing to work for such meagre wages? I dont think they could. So whilst I accept the argument that IBs can be seen as a way of pressurising costs downwards in this case it couldn't apply in my view.
The fact that Cornwall took a huge risk in appointing a sole provider based we must assume primarily on cost was a massive risk and a risk too far. What does this say about the knowledge, intent and competence of commissioners there? When we add in the fact that the "Cornwall Model" was at the behest of central government to develop and then disseminate as best practise, do we also assume that CLG approving this also shows their ignorance of commissioning in general and supported housing in particular? I think it does. The fact that Cornwall has additional money to develop the model and that they commissioned academic support and advice in developing the model add to these points. In summary commissioners in Cornwall have made massive errors here with the best advice and resource yet remain in situ with little or no accountability. That is unacceptable.
The financial manifestation is that the alleged cost savings anticpated by Cornwall will most likely be eroded or cost more than previously due to the significant resource costs in retendering. But so many other local authorities in SP have followed this clearly flawed "Cornwall Model." CLG still advocate this model by the fact that they have not issued guidance or steer to all SP authorities to at worst proceed with caution.
I wonder how social workers and other care staff would feel if their jobs and services were tendered? Or how they would feel about being TUPE'd three times in less than a year? What is the impact on service provision for vulnerable people with such demoralised staff? These are the key issues here and all in my view far more significant than the personalisation agenda in this case.