Decision details

Allocation of Dept of Working Pensions Section 31 local authority grant for Individual Placement and Support (IPS) 2022-2025

Decision Maker: Cabinet Member - Health and Wellbeing

Decision status: Awaiting Implementation

Is Key decision?: No

Is subject to call in?: Yes


Sefton Council have been successful in securing revenue-only funding for the delivery of Individual Placement and Support (IPS) employment support in community drug and alcohol treatment services.  


This funding is from the Department of Work and Pensions (DWP) through the support of the Office for Health Improvement & Disparities (OHID). A total sum of £317,953 has been identified for Sefton. The breakdown of funding is £87,996 (part year) for 22/23, and indicative allocations of up to £113,868 for 23/24 and £116,088 for 24/25 has been allocated, subject to annual confirmation from HM Treasury.  This grant will be provided pursuant to section 31 of the Local Government Act 2003. This is a three-year funding scheme running from April 2022 to March 2025, to support the delivery of the IPS approach.


The Contract Procedure Rules require the authorisation of a Cabinet Member to allocate £317,953 to the current provider of Substance Use: Assessment, Treatment and Recovery Services CGL for delivery of the support approved within the funded proposal.


There is provision for this allocation via a contract variation under Regulation 72 of the Public Contract Regulations which states:


“Contracts and framework agreements may be modified without a new procurement procedure in accordance with this Part in any of the following cases:

(c)where all of the following conditions are fulfilled: —

(i)the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;

(ii)the modification does not alter the overall nature of the contract;

(iii)any increase in price does not exceed 50% of the value of the original contract or framework agreement.


The funding was not available at the initial procurement by the LA in April 2021. We were only aware of the possibility of IPS funding for Sefton in March 2022.


The intended beneficiaries are already engaged in the Substance Use: Assessment, Treatment and Recovery Services commissioned from CGL by the council.


The additional grant funding does not exceed 50% of the original contract annual value.


Under the Terms of the Grant expenditure must be incurred within a time period of July 2022 to April 2024. Delivery of outcomes will be monitored nationally via OHID.  Failure to comply with the Grant requirements may result in the recall of all or part of the funding.





(1) The proposed contract variation to the current contract with Change, Grow, Live for the current service be approved, to deliver the funded IPS interventions.


(2) Authority be delegated to the Head of Health and Wellbeing / Director of Public Health to formalise the agreement to add via a contract variation an additional £317,953 to the contract with CGL for the provision of Substance Use: Assessment, Treatment and Recovery Services.


Reasons for the Decision(s):


·       The external funder has approved the intended approach.

·       The allocation of £317,953 is to support entry into employment for the local substance use population.

·       The potential beneficiaries will have an already established relationship with the service provider.

·       The proposal involves enhancing existing interventions provided by the service to support recovery for clients who are engaged in or exiting treatment from the service.

·       The service provider has well established Recovery pathways in place across the system and experience of delivery of IPS in other areas of Merseyside and are best placed to successfully implement the programme.



Alternative Options Considered and Rejected: (including any Risk Implications)


The other option would be to procure another provider to deliver against the funding and this has been rejected due to economic and operational reasons. CGL already has sub contractual arrangements in place to provide the IPS service under the same Grant requirements in other substance use services across Merseyside including Knowsley and Wirral. The proposed option will provide some economies of scale and can be operationalised quickly and efficiently based on experience from elsewhere.


Publication date: 26/07/2022

Date of decision: 26/07/2022

Effective from: 04/08/2022

Accompanying Documents: