The Shareholder Committee for Care Dorset Holdings Ltd met to discuss the Dorset Council organisational update, and receive an update on Care Dorset. The committee noted the continued progress made in developing the relationship between commissioners and Care Dorset, and also noted the Care Dorset update report.

Care Dorset Update

The committee received an update on Care Dorset's operational and financial performance. Key points from the Care Dorset Update included:

• Occupancy Levels: Block-funded residential beds are at 91% occupancy, a 5% increase from the previous report. Reablement beds remain consistent at 82% occupancy.
• Community Reablement: The team delivered 12,249 hours of reablement in the three months leading up to 31 August 2025. 99% of individuals completed their support without needing an increase to their initial package, resulting in a saving of 1,504 hours of ongoing care per week.
• Day Opportunities: Care Dorset is supporting Dorset Council's appointed delivery partner by providing financial data to inform their cost analysis.
• Workforce: Voluntary turnover for the 12 months ending August 2025 is at 14%. Sickness levels across Care Dorset are at 12.5 days per colleague per year, a reduction of 1.5 days since January 2025, exceeding the target of 14 days by 31 March 2026.
• CarePath Academy: Care Dorset has branded and trademarked its academy, which will initially offer structured routes for Care Dorset colleagues to develop and achieve nationally recognised qualifications. In the future, the academy will offer training and qualifications externally to support income generation and the regional social care sector.
• Financial Performance: For the period October 2024 to August 2025, there was a small operating loss of £20,000 against a budgeted surplus of £250,000, a year-to-date deficit variance of £270,000. This is due to higher than expected agency costs, additional costs for equipment replacement/renewals and cleaning costs. A 40% reduction in the cost of agency staff is on target to be achieved by 30 September 2025, supported by a partnership with Neuven, a neutral agency vendor. Year-to-date revenue stands at £29.2 million, compared to a budgeted £30.5 million, a shortfall of £1.3 million, primarily due to lower than anticipated occupancy at St Martin's and the loss of income from 10 reablement beds. There is an additional £250,000 of private funding in registered care, and Care Dorset is on track to achieve the target of generating £1.4 million of revenue from private funding by 31 March 2026.
• Operational Structure: A restructuring exercise has been completed, introducing the role of Area Manager to improve oversight of service delivery and support to local leaders. A new role of Head of Customer Experience has been recruited to ensure that every touchpoint reflects the organisation's values and delivers on its promise of person-centred care. The Head of Customer Experience is supported by the Safeguarding Lead and the Involvement & Engagement Lead.
• Annual Business Plan: The 2025/26 Annual Business Plan was formally approved by the Shareholder on 14 April 2025 and is aligned with Care Dorset's five-year strategy, Your Life, Your Way. The plan has six delivery areas: moving to a hub and spoke model for day opportunities; developing and implementing an agreed operating model; enhancing existing and developing new models of support; opening the Care Dorset academy; publishing enabling strategies; and using the reablement model as a prevention model.
• Corporate Governance: The annual accounts for the year ending 30 September 2024 have been filed with Companies House, and registration with the Information Commissioners Office has been renewed for Care Dorset Ltd. Dr Felix Davies, a Registered Practitioner Psychologist, has joined the Board of Directors to support the organisation in strengthening governance of clinical and therapeutic matters.
• Other Matters: A colleague working at Dorchester Road, a new transition service for young adults in Weymouth, has been nominated for an Andor Award in the category of 'Best Ambassador'. Care Dorset will host its Colleague Awards Evening on 11 October 2025.

Regarding property matters, there has been no material progress on remedial works to address defective fire doors within the day service buildings. A comprehensive side-letter intended to supplement the existing occupation agreement is still pending finalisation. Concerns are increasing regarding the resilience of heating systems across the residential care estate, with a boiler failure at one home in mid-September leading to a four-day disruption in hot water provision. Initial discussions are underway between Care Dorset and Dorset Council to explore the long-term strategy for the properties currently used by Care Dorset.

Dorset Council Organisational Update

The committee received an update on developments led by Dorset Council that are relevant to Care Dorset.

• Day Services: Dorset Council is developing a new model for day opportunities. The formal consultation has now closed, and feedback is being used to develop revised proposals for Cabinet consideration in December 2025.
• Supported Living: Dorset Council commissioned Care Dorset to operate a supported living service in Weymouth in 2023, designed to support young adults in building independence and transitioning to fully independent living. Building on this progress, Dorset Council is working with Care Dorset to develop a second move-on service in Weymouth. The Council and Care Dorset are working collaboratively to explore how these services can evolve to meet future needs, ensuring they remain responsive, sustainable, and person-centred.
• System-wide Transformation: Reablement remains a key area of focus across Dorset's health and care system, with coordinated work progressing through the FutureCare Programme. The Home-Based Intermediate Care (HBIC) workstream, in which Care Dorset are supporting, continues to deliver strong outcomes. A strategic review of intermediate care bed distribution is underway, with Dorset Council and NHS Dorset committed to a medium-term ambition for a neighbourhood-based model that includes specialist bedded reablement. The Care Dorset Community Reablement Team will begin using a Reablement App to support the setting and tracking of SMART focused goals¹ with all individuals they supported. Care Dorset has played a central role in the Right Care at Home pilot, which aimed to right-size new home care packages before long-term support was commissioned. This learning has directly informed the development of the Reablement at the Front Door model, launching in October 2025, which focuses on prevention and early intervention.
• Finance: A targeted saving of £500,000 is expected from improved operational efficiency within day services. Care Dorset is now operating from a more stable and strategically aligned position, supported by the agreement of a five-year business plan and the approval of a working capital loan from Dorset Council. Commissioners intend to continue working with Care Dorset on an open-book basis to ensure transparency and a shared understanding of where efficiencies can be identified and reinvested into the contract. Dorset Council and Care Dorset are planning to hold a joint summit later this year to further strengthen collaboration and strategic alignment.