Decision details

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.

Agreed to move to full cost recovery in Carephones