Department of Health

Website of the Department of Health

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Social care PFI initiative

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

Eligible social care PFI schemes can be awarded PFI credits from DH. The award of PFI credits (paid in the form of an annuity to LAs alongside their central grants) supports PFI in LAs.

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.

LAs can submit bids to the Department of Health for the award of PFI credits for their schemes. DH has an annual budget out of which the awards are made; these lump sums, which support the capital cost of a scheme, are converted into an annuity by DCLG (Communities and Local Government), which is paid to the council when the unitary charge starts to be incurred.

(Gateway reference: 8451)

Policy criteria

DH has set policy criteria, which must be met for a scheme to be eligible: 

Queries

For queries about bids, or any other aspect of social care PFI/LIFT, please contact:

Susan Peak (Social Care PFI policy, independent PFI procurement)
0113 254 5305

John Mann (LIFT policy, social care projects procured via LIFT)
0113 254 5358

Bidding

Bidding round 2005

Five councils were awarded PFI credits in the 2005 round: Birmingham, Medway, East Sussex, Tower Hamlets and Wolverhampton. Medway has since decided not to pursue its scheme.

Bidding round 2008

A bidding round was held in 2008, and the following councils were awarded PFI credits:

 Council  Brief description of scheme  Project contacts
 Birmingham  A Special Care Centre for elderly people  Charles_Ashton-Gray@birmingham.gov.uk
 Derbyshire  Three to five sites [phased] delivering residential and other care for elderly people  bill.robertson@derbyshire.gov.uk
 Dudley  Social care day services as part of a Joint Service Centre  Richard.Carter@dudley.gov.uk
 Essex  Five community wellbeing centres – all ages  Toni Flowers Lead Business Administrator and PA to Jenny Owen toni.flowers@essexcc.gov.uk
 Hammersmith & Fulham  Social care support addition to White City LIFT project  Vicky.Page@lbhf.gov.uk
 Hull  Residential care for older people  Angela.Dunn@hullcc.gov.uk
 Leeds  Wellbeing centre in Holt Park – all ages  angela.lawson@leeds.gov.uk
 Stockton  Integrated community centre  Sylvia.Avison@stockton.gov.uk
 Suffolk  Four sites providing intermediate and dementia care  Peter.Tempest@socserv.suffolkcc.gov.uk
 Wolverhampton   A centre for older people with mental health problems, including dementia   Heather.Mytton-Sanneh@wolverhampton.gov.uk 

Bidding round 2009 

The initial stage of this bidding round has now closed. It has been heavily oversubscribed. A number of authorities are preparing Expressions of Interest, for which the scheduled submission date is 30th November 2009. Allowing a period for evaluation, the round is expected to complete in March 2010, and a list of the authorities successful in being awarded PFI Credit allocations will then be posted. For any queries, please contact:

Susan Peak (Social Care PFI policy, independent PFI procurement)
Tel: 0113 254 5305

PFI procurement

A LA social care PFI project may be procured through one of two routes, either as a PFI procurement, or via a LIFT scheme.  Both are described on the following page.

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