The Adult Care and Public Health Scrutiny Committee met on Friday 27 February 2026 to discuss several key issues affecting adult social care in Lincolnshire. The committee considered the usual costs for residential and nursing care, the extension of the Direct Payment Support Service contract, and the future of the Mental Health and Wellbeing Community Investment Fund. They also discussed the decommissioning of the Memory Support Service, a review of the Mental Health Section 75 NHS Act 2006 Agreement, and the committee's work programme.

Residential Care and Residential with Nursing Care Usual Costs

The committee considered a report on the usual costs for residential and residential with nursing care, which was due to be decided by the Executive on 3 March 2026. The report detailed proposed rates for various care categories, including older people, learning disabilities, mental health, and physical disabilities, with increases ranging from 5.28% to 5.98% for different services. The Executive was asked to approve these rates, along with a three-month extension to the Residential Framework Agreement and the establishment of an interim agreement until March 2028. The report also outlined a new Hardship Process to support providers at risk of financial failure. Numerous care providers submitted feedback, expressing concerns that the proposed uplifts did not fully cover rising costs, particularly for staffing, National Insurance contributions, and utilities. Many argued for higher increases to ensure the sustainability of their services and maintain quality of care.

Direct Payment Support Service Contract Extension

The committee reviewed a report concerning the extension of the Direct Payment Support Service (DPSS) contract with Penderels Trust Limited. The current contract was due to expire on 30 June 2026, and a 12-month extension was proposed to allow time for recommissioning, ensuring alignment with the Direct Payment Improvement Programme. The DPSS provides advice, information, support, and training to individuals managing direct payments for their care. The report highlighted that fully managed accounts represented the highest referral type, exceeding initial forecasts and necessitating additional funding in recent years. Despite this, Penderels Trust was reported to be exceeding key performance indicators, with high levels of user satisfaction and successful recruitment of personal assistants. The proposed extension, valued at £648,140 (including VAT), was intended to ensure service continuity and allow for strategic improvements before a new contract is established.

Future of the Mental Health and Wellbeing Community Investment Fund

The committee considered the future of the Mental Health and Wellbeing Community Investment Fund (MHWCIF). The current contract with Shine Lincolnshire, which administers the fund, was due to end on 31 March 2026. The report indicated that there was no provision for extending the contract with Shine Lincolnshire and no identified budget allocation for the Council's contribution to the MHWCIF beyond the current financial year. It was understood that the Lincolnshire Integrated Care Board (LICB) intended to continue the MHWCIF from 2026/27 and manage its oversight and administration. Therefore, the proposal was for the Council to cease its contribution and leadership of the fund from 31 March 2026. The report noted that alternative grant and support opportunities were available for community groups. An Equality Impact Analysis indicated potential adverse impacts for people with disabilities who benefit from funded groups, mitigated by the requirement for funded organisations to have plans for long-term sustainability and to source alternative funding.

Decommissioning of the Memory Support Service

The committee discussed the proposed decommissioning of the Memory Support Service, which was due to end on 30 June 2026. A review concluded that the service, in its current form, no longer aligned with the strategic direction of the Lincolnshire Dementia Strategy or the Adult Social Care Strategy and Target Operating Model. The report highlighted that alternative provision and support, particularly for carers, were available through the Lincolnshire Carers Service and other community resources. The service had evolved to largely function as a post-diagnosis information and advice service, with the majority of referrals coming from health sources. The decommissioning was recommended due to a lack of strategic alignment, potential duplication with other services, the absence of a statutory duty for the Council to commission the service, and no identified budget beyond the current contract. An Equality Impact Analysis identified potential adverse impacts for older people and unpaid carers, mitigated by signposting to alternative, accessible services and a communications plan for stakeholders.

Review of the Mental Health Section 75 National Health Service Act 2006 Agreement

The committee reviewed the report on the Mental Health Section 75 NHS Act 2006 Agreement. This agreement, in place for over 20 years, delegates the day-to-day running of adult mental health social care services for people aged 18 to 64 to Lincolnshire Partnership NHS Foundation Trust (LPFT), with Lincolnshire County Council (LCC) retaining statutory accountability and budget responsibility. Independent reviews by SCIE and Channel 3 Consulting, along with local intelligence, identified issues with escalating financial pressures, limitations in data and forecasting, and the need for stronger governance. Both LCC and LPFT proposed ending the current arrangements and reverting responsibility for commissioning and delivery to LCC. The recommendation was to approve the termination of the MH-S75 Agreement as soon as lawfully and safely possible, but no later than 31 March 2027, and for LCC to directly provide the service. Alternatives, including a new Section 75 agreement or an alternative provider model, were considered but deemed not feasible within the required timescales. The report detailed significant financial pressures, pathway inconsistencies, data gaps, and the need for improved governance. An Equality Impact Analysis indicated potential risks during the transition period, which would be mitigated through clear communication, continuity planning, and ongoing monitoring.

Adult Care and Public Health Scrutiny Committee Work Programme

The committee reviewed its forward work programme, which included upcoming items such as Residential Recommissioning, Direct Payment Support Service Extension, the Future of the Mental Health and Wellbeing Community Investment Fund, Decommissioning of the Memory Support Service, and the Review of the Mental Health Section 75 NHS Act 2006 Agreement. Future items scheduled for March and April 2026 included discussions on Advocacy Services, Adult Social Care Three Year Business Plan, Co-production Strategy, Service Level Performance Reporting, Support for the Care Market, Housing Related Support, Bed Based Care, Short Breaks Recommissioning, and the Lincolnshire Safeguarding Adults Board Annual Report. The committee was invited to suggest additional items for its work programme. The forward plan of key decisions was also presented, outlining upcoming decisions by the Executive and Executive Councillor for Adult Care and Health.