In a surprise announcement Glasgow City Council is to close Cordia, the Arms-Length External Organisation (ALEO) which until now has been the preferred provider of social care in the city. Cordia employees will transfer to the Council, bringing its social care function back in-house.
As part of the new approach, the Council will overhaul the way that it purchases community-based care services from other providers, including the third sector, in line with their Transformation Strategy, a far reaching reform programme that aims to modernise working practices and deliver required savings of £133m over the next two years. See this article for more details
Proposals include testing a new purchasing model, which will see a move away from purchasing care services by the hour. It is unclear at this stage what the new model will look like, however, a further report will be submitted to committee in March 2016 outlining plans, which will include working with a small number of organisations in the coming year to test out new approaches.