Tory conference: May outlines third sector social services role

Shadow secretary of state for work and pensions Theresa May believes social enterprises have a part to play in delivering social services through personal budgets.

Speaking on the final day of the Conservative party's conference at a fringe event run by Acevo, which represents voluntary organisation bosses, and think-tank Demos, May said 'third sector organisations' were likely to be sub-contracted rather than be the main provider in services operating with personal budgets.

Personalisation, already available for social care, sees service users take control of their social situation or health condition by deciding what their personalised budget should be spent on. It's an initiative supported by both the Labour and Conservative parties.

Although she referred to the broad third sector, when asked specifically about social enterprises by this magazine, May said: 'The model I have in mind is one where social enterprise can play a part. Most of it would be a sub-contractor to a prime contractor.'

However, referring to the Conservative 'pay by results' policy, she said funding could be a barrier.

'The pay by results model means we have to have investment up front and, for a lot of third sector organisations, that's not possible,' she said.

May also mentioned the Social Investment Bank, declaring the initiative was 'worth looking at'.

She also said there 'may be' a role for charity in providing brokerage and advocacy services.

The event, chaired by Matthew Pike from Acevo's personalisation commission, also heard from Dan Finn of the University of Portsmouth, Anders Hultin, CEO of GEMS UK, and Richard Humphries of The King's Fund.

Humphries, senior fellow of the King's Fund social care section, said personal budgets were not yet being utilised and that, out of £100 pounds spent on social care, only £2 is spent in a 'personal payment'. He added that just five per cent of the country has access to personal budgets.

'For it [personal budgets] to work, we need local authorities in the market and we need individual support and brokerage,' he said.

It was a stark contrast to the examples in Sweden given by Hultin, who described a system of 'symbolic vouchers' amounting to £5,000 per person that can be spent on education, health and social care. As a result, 1,000 new schools have opened since the initiative began in the early 1990s, 75 per cent of which are operating in partner with 'for profit' organisations.

'We believe parents have the right to choose schools and pupils should be able to chose what subjects they take, how their timetable should be, what they learn at their own pace and their own level,' he said.