Content

DECLARATIONS OF
INTEREST MADE FOR THIS ITEM:
 
None
 
RESOLVED:
 
That the Cabinet Member for Health, Social
Care and Wellbeing pursuant to CSOs 2.01c and permitted under
0.08:
 

1.   
Approved the direct award of short-term emergency continuity contracts
to the new provider for an initial term of one year from 1st
December 2025 to 30th November 2026 (with the option to extend for
up to a further year), up to the maximum aggregate value of the
contracts -  being of £4.502m (if
fully extended), comprising:
a.   
Up to £25,492 pa for continuation of the existing arrangement
for Housing Related Support (HRS) services until the current
termination date 31st December 2025;
b.   
Up to £2.25m per annum for individual spot placements at the
prevailing commissioned weekly rates, for an initial one-year
period with the option to extend for up to a further
year;
c.    
Actual expenditure will be based on assessed needs of each
individual and may be lower than the stated ceiling
value.

2.   
That effective 1 January 2026, where an individual receiving Adult
Social Care (ASC) services is assessed as having a need for Housing
Related Support (HRS), the following financial arrangement will
apply:
a.   
The assessed HRS hours will be funded in gross by ASC to ensure
continuity of care and streamlined payment processes.
b.   
These costs will subsequently be recharged to the HRS service in
accordance with agreed inter-departmental protocols.
c.    
This arrangement ensures clarity in funding responsibilities while
maintaining compliance with statutory duties and supporting
integrated service delivery.
 

3.   
Delegated authority to the Director of Adults Social Care, after
consultation with the Director of Finance and the Cabinet Member
for Health, Social Care and Wellbeing, to finalise the terms of
award and to finalise contracts.
 
1.1.1.  
Agree to provide transitional financial support if required to
maintain safe staffing and service continuity during mobilisation
and handover, subject to appropriate governance and financial
controls.
 

Reasons for decision
The
current provider’s insolvency prevents it from meeting
ongoing operational and statutory obligations. Without immediate
intervention, there is a risk of sudden service cessation, putting
vulnerable residents at risk and breaching the Council’s
duties under the Care Act 2014.

 
A
market sales process undertaken by the provider’s insolvency
practitioners has identified a preferred organisation with the
capacity and experience to assume responsibility for the services.
However, the proposed transfer relates to the service provision
alone; the Council will not assume liability for the insolvent
legal entity.

The Council must act urgently to maintain service continuity,
retain skilled staff, and minimise disruption for residents and
families. A delay in decision-making would significantly increase
the risk of unmanaged service failure.
A one-year term with
an option to extend for a further year provides the operational
stability needed for a safe and orderly transition to the new
provider, while safeguarding the integrity of the wider
transaction. Accommodation-based services require a carefully
managed and secure handover to ensure continuity of care and
minimise risk.
Alternative options considered
Do Nothing
Not viable. The provider is unable to continue trading and would
otherwise collapse, leaving residents without essential care
arrangements.

Bring Services In-House on an Emergency Basis
This option was considered but discounted. The Council does not
have the immediate staffing, necessary CQC registration, or
infrastructure to take on these services within the required
timeframe without disrupting care or creating further safeguarding
risks.

Procure a New Provider via an Open Tender
Timescales required to undertake a compliant procurement exercise
would not allow for a safe transfer. Residents could be left
without essential support.