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CHARITY FACES BLEAK FUTURE
Age Concern rocked by the loss of care contracts worth £1m
WESTMINSTER’S longest established charity for the elderly is fighting for its future after it was stripped of three lucrative care centre contracts, plunging vital services into crisis and leaving staff facing redundancy.
Age Concern Westminster – a landmark institution that has provided frontline services to the borough’s most vulnerable residents for 40 years – may be forced to close its flagship office and shop in Edgware Road after the council rescinded its contract for two day centres in Pimlico and one in Maida Vale.
Insiders said the decision has precipitated a boardroom meltdown and fears that a staff cull is now inevitable.
At least five staff, some in senior management, are expected to lose their jobs and the organisation is in talks with landlords over the future of its Edgware Road premises, where it has been based for the past 10 years.
Elderly campaign groups have attacked the council over the decision, which they believe will lead to a negligible cost saving.
This is refuted by the council, who have handed the contracts to Housing 21, a sheltered housing provider which specialises in private finance initiatives.
Housing 21 already runs a number of care services in the borough and scored more highly than Age Concern in council quality ?assessments.
However, there are fears that any sudden changes to services could cause alarm to users familiar with Age Concern.
As well as the centres – which open from 9am to 5pm every day, offering lunch, activities, personal care and transport to around 70 elderly residents – the charity also runs a shop, a benefits advice service and a mini travel agency.
The three care homes in question amount to more than half of the organisation’s income – £1million a year over five years – putting enormous pressure on the charity to maintain the quality of their remaining services while making cutbacks.
Martin Davies, the chief executive of Age Concern, said he would embark on a “restructuring” programme to try and save the organisation.
He said: “This is sad news for us, and we have a tough period ahead adjusting the charity to the new situation. If we must move to save staff then we will, but we are going to have to make cutbacks. Now it’s a matter of making our other services fill the void.”
But to one of the trustees the picture is more gloomy. Barbara Grahame, who is also a Labour councillor said: “The decision has come as a massive shock to us. The organisation was looking at expanding and now it’s going backwards. Giving up the shop and offices will be a massive blow. Around five staff will go and that is the minimum.”
Irene Kohler, director of Westminster Advocacy Service for Senior Residents said: “My worry with these contracts would be that change can really unsettle old people. I hope the new providers respect this.”
The council has stood strong in the face of criticism and defended the decision.
Social services chief Councillor Ed Argar said: “Following the latest retendering process I agreed that Housing 21 should be awarded the contract because it was offering a higher quality service than other organisations.
“Providing the highest quality services to our residents in Westminster is a top priority. Housing 21 has a strong presence in Westminster and their dementia and personal care services in the city are highly valued by our residents.”
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