Update on the Financial Situation Facing the Clackmannanshire and Stirling Health and Social Care Partnership
Following the Clackmannanshire and Stirling Integration Joint Board meeting on Wednesday, 26th March, we want to update you on the challenging financial situation facing the Health and Social Care Partnership (HSCP). While only some SVE/ CTSI members will receive their funding from HSCP we are writing to you all as we believe that all our members have a interest and connection with the health, social care and wellbeing of our communities. The constituent bodies—Stirling Council, Clackmannanshire Council, and NHS Forth Valley—have been unable to agree on a funding allocation to cover the 2024/25 year-end and the projected budget deficit for 2025/26.
As a result, without an agreed budget, the HSCP is required to develop a Recovery Plan to address an £8 million funding gap. This will mean strict controls on non-contractual spending and some service reductions, though essential services will remain unchanged. This is an unprecedented situation, and we are working hard to highlight to decision-makers the potential impact on the third sector and the people and communities we serve. We are in daily contact with Health and Social Care representatives to assess the implications for your services. We have emphasised the need for timely communication, ensuring organisations can plan effectively. We have written to the three Chief Executive's of the constituent bodies raising our concerns.
We have specific concerns about organisations with 'rolling contracts' most recently until the 31st March 2025. We have received assurances that existing commitments will be honoured and any changes to commissioned services will be carefully considered, with a focus on the essential nature of your work and the risks to services and vulnerable individuals. If changes to services are necessary, they will be implemented with at least 12 weeks’ notice. Additionally, we are concerned about any delay to the uplift to the Scottish Living Wage for Care Providers and how this will be addressed within the current financial constraints.
It is important to highlight that, in some cases, funding for your essential work is allocated directly from the Scottish Government to the NHS or local councils. While these funds are not ring-fenced, they closely align with national priorities, including supporting carers, expanding choice and control through Self-Directed Support (SDS), and protecting vulnerable individuals, such as those affected by addiction. Because of this alignment, your work remains a strategic priority both nationally and locally.
Additionally, we understand that some existing contracts will be upheld, meaning there will be no immediate reductions or changes. However, as the new Recovery Plan is implemented, service delivery models may evolve. Over time, this could change how services are contracted. In many cases, this will align with existing commissioning frameworks and the move towards more community-based models.
This situation is developing rapidly, and we will keep you up to date as discussions continue at both local levels and with the Scottish Government. This is a difficult time, and we will be with you every step of the way. Please do not hesitate to reach out for support and please know that we are advocating for the third sector and the essential role you play in supporting our most vulnerable citizens. The third sector is not and never will be dispensable, you are indispensable.
Anthea Coulter, CTSI Chief Officer
Natalie Masterson, SVE Chief Officer
