Croydon Council Approves £7.9 Million Investment for Children's Services Transformation
Croydon Council's Cabinet has approved a £7.9 million investment for the second phase of the CYPE Strategic Transformation Partner programme with Newton. This funding, which includes expenses, will see the continuation of work aimed at improving practice, managing demand, and increasing the effectiveness and efficiency of children's services.
Mayor Jason Perry stated that Phase 2 will implement the specific changes identified in Phase 1 to improve practice, manage demand, increase effectiveness, and improve efficiency
for vulnerable children and families. The programme is forecast to generate cumulative financial benefits of £52 million by 2030-31, representing a return of approximately £4.50 for every pound invested.
Councillor Andy Stranack, Cabinet Member for Children and Young People, highlighted the programme's focus on early help and preventative care,
aiming to shift the service model from costly reactive crisis intervention towards robust early help and preventative care.
This partnership brings specialist external expertise to work alongside in-house teams, equipping them with advanced data analytics, demand management tools, and innovative commissioning frameworks.
Regarding the financial arrangements, Mr O'Connor, from officers, clarified that a basic payment is made to Newton, but any amount beyond that is entirely at risk until savings are delivered.
Councillor Stranack further noted that Newton's fees will be placed fully at risk against an agreed guarantee and benefits will only be recognised when they are evidenced and sustainable.
This approach ensures that the council's investment is tied to demonstrable improvements in children's services.
The total aggregated cost of the Newton work, including Phase 1 diagnostic costs, is £8.9 million plus expenses. The £7.9 million investment for Phase 2 is intended to drive these significant financial benefits and service enhancements.
Concerns were previously raised by Councillor Bushid Graham, Shadow Cabinet Member for Children and Young People, regarding financial risk transfer arrangements with Newton, specifically the fee guarantee level. The clarification from officers and Councillor Stranack addresses these concerns by detailing the performance-based nature of Newton's remuneration.
The key performance indicators for measuring 'effectiveness and efficiency' are intrinsically linked to the delivery of evidenced and sustainable savings, as outlined in the financial risk transfer arrangements. The programme's success will be measured by its ability to achieve the projected financial benefits and improve the overall functioning of children's services.
This investment is part of a broader strategy to enhance the support provided to vulnerable children and families in Croydon, with a clear focus on long-term financial sustainability and improved service delivery.