Cilip cuts capitation by 50%

Cilip will pay its local branches and special interest groups 50% less capitation in 2007 as part of a new business plan voted in by its Council.

Cilip members are assigned a branch according to their locality and can join two special interest groups for free as part of their membership, but are free to join as many groups as they wish. Each branch and special interest group receives a capitation sum of money from Cilip based on the number of members it has, these groups also receive a lump sum from Cilip.

For 2007 the capitation amount per-member will reduce by 50% following a vote by the Cilip Council. "Every member of the Council voted to do this," said Bob McKee, Cilip chief executive.

Some groups may be concerned, Karen Blakeman, Cilip UKeiG Councillor said UKeiG is not concerned. It doesn't worry us, but there may be groups that will be in financial trouble," she said. Blakeman said one option open to Council was to reduce capitation by 80%, which she believes would have put a number of groups into difficulty.

"The capitation is a derisory amount, it doesn't even cover admin costs," Blakeman said.

Cilip Council voted in the new figure as part of its decision to adopt a new working model, devised by the New Business Model Working Group. "This will stop the nonsense that Cilip is in financial difficulties," McKee told IWR. Adding, "The 50% saved will be used to balance the budget as part of the new business model, which comes into force immediately."

Overall Blakeman agrees, "The branches and groups will have to have business model, react to market forces, be economically viable and do what the members want them to do."