Wightcare has been given just 2 years to break even following the decision by the Isle of Wight Council to keep it in-house, but withdraw its £550,000 subsidiary.
Wightcare, owned by the Isle of Wight Council, will have to find a financially viable way forward to support the 2,100 Islanders it cares for.
The service costs £1,572,000 a year to run and while two-thirds of its costs are covered, the council uses taxpayers’ money to subsidise the remaining unpaid balance. This year, 2021/22, the authority will foot the nearly £550,000 bill.
It follows a 13% hike in fees earlier this year, which the council hoped would generate a further £101,000. However, demand has reduced, with 92 customers leaving the service.
An independent review determined the council could not continue to increase fees alone but should look at how resources are deployed and operate in a more business-like way to increase growth and minimise costs.
The council’s cabinet had to decide whether to retain the service, outsource it to the private sector or create Wightcare as a trading company.
It was unanimously agreed to keep the service in-house but develop a 2-year cost recovery model, starting from April, to achieve the breakeven position.
Speaking at the meeting, Councillor Karl Love said it was recognised there had been some shortfalls in Wightcare but they were trying to reduce them. He said Wightcare was an important service as it allows people to live independently in their homes and helps reduce the pressure on the NHS as it keeps people out of hospital.
It was thought keeping the service in-house would pose the least risk and allow the council greater control and quicker responses.
A transformation plan including a service redesign, offer review and enhanced marketing will now take place.
It’s obvious to break even IWC are going to trim the service down to the bone.,and as IWC own Wightcare, the council are hopeless at managing your taxpayer money .. Island Road, FB6, Wightcare, do you see a trend here ??
They’re a waste of time. If they get a call, they do anything to get out of it. They refer everything to the councils “mobile night” girls to sort it out or they call the ambulance service. They even call relatives of the caller to go. Shut the whole issue.
The isle of wight Council couldn’t run a drinks party in a brewery. There are to many chiefs and not enough Indians. Put it out to private they will do it more efficiently and cheaper
They have about as much chance of breaking even and we have of our council tax freezing.
Already out of pocket from paying people to review the business (sorry it’s not a business it’s a service) and tell them what to do.
And do they not realise that all this negative publicity means attracting new customers is hopeless.
Is this the end of the beginning or the beginning of the end?