Purpose

Carephones is currently in the
process of re-structuring because the current model is not
operationally sustainable due to the continued increased demand.
The improved model requires £215K increased funds.
 
The increase would be as follows: £1.10
per week increase plus the new customer charge of £50 for
each new installation. This will cover all the cost of the new
service at £215K.
 
If the corporate costs are to be included it
will be £2.57 per week increase plus the £50
installation charge.
 
An Integrated Impact
Assessment has been completed which highlights the main impact
would be individuals on low incomes. The Carephones service is a
means tested service via a financial assessment. There are
currently approximately 7000 registered Carephone users and 3200
Carephone users who pay for their service.
 
All options of
alternative funding streams have been explored and
exhausted.
 
The main mitigating
factor for risk in this option is that this service is means tested
so only those who can afford to pay will pay the increased
charges.
 

Content

Agreed to move to full cost
recovery in Carephones