From Pam Newby, Exeter 383654, July 29, 2008

Devon County Council's Executive has agreed to endorse the outline agreement reached with Shaw Healthcare to transfer the Council's residential services.

Officers will now continue negotiations through to completion of the contract.

The care contract will see the Council's 24 residential homes for older people transfer to Shaw Healthcare, and bring about investment of £100 million to deliver improved social care for adults over the next 30 years.

Under the plans, 19 of the Council's homes will be re-developed over three phases.

Over an eight year programme, the redevelopment will:

Provide 19 new developments on existing sites.

Provide up to 1,070 new units of accommodation, including 360 extra care flats in state of the art new buildings for older people across the county.

Increase the availability of care for older people with dementia and with nursing needs - both are specialist care services that are in short supply right now in Devon.

There will also be more short-term care, including respite and intermediate care for older people.

The Council's Director for Adult and Community Services, David Johnstone, said: "I am pleased that after considerable negotiations with Shaw Healthcare, Unions, and other partners, we now have an excellent programme of partnership. We will be able to develop modern care services which are designed to meet the high expectations and future needs of our older people."

Executive Member for Adult Services Cllr Hugo Barton said: "I'm very happy with the outcome from today's meeting. This is still work in progress and not least legal and financial details. There will be a formal consultation process with residents, carers, families, staff and local councillors, although I'm more than happy to speak to anyone who would like to discuss the developments.

"We will continue to work hard to ensure that in-house domiciliary care is improved to further support people who wish to stay in their own homes."

Jeremy Nixey, Chief Executive of Shaw Healthcare, said: "I am delighted that Shaw Healthcare will be working alongside Devon County Council to deliver modern care services where support is most needed in Devon. Shaw has a long track record of providing first class, quality services to older people, and we are very excited about the proposed programme of improvements that we will be able to deliver."

Staff transferring to Shaw Healthcare will keep their conditions of service and pension entitlements, retaining admission into Devon's pension scheme.

As homes close to allow redevelopment, staff will be offered suitable alternative employment in Shaw where possible, and where this is not possible, will be offered redundancy.

Members of the Executive did not accept a bid by Shaw Healthcare to take over the running of the Council's in-house domiciliary care.

Notes for Editors:

Councillor Hugo Barton, 01805 624768.

Jeremy Nixey, Shaw Healthcare, 02920 365050.