The Cabinet Procurement and Insourcing Committee of Hackney Council met on Monday 1 June 2026, agreeing to award a significant contract for children's homes and noting previous meeting minutes. The committee also addressed administrative matters and procedural items.

Commissioning Children's Homes in Hackney for Children Looked After

The committee agreed to award a contract to Provider B for the delivery of residential care and support for children looked after, aged 11-17. This contract will run for an initial period of five years, with an option to extend for a further two years in annual increments (5+1+1). The decision was made to enhance the quality of care and experience for children looked after by minimising disruption and keeping them connected to their communities, while also delivering savings. The partner provider will work closely with Hackney's Children & Families Service Management Team to ensure high-quality service delivery and Ofsted registration.

The successful provider is committed to reducing its environmental impact through various sustainability measures, aligning with Hackney's climate action commitments. They will also prioritise sustainability through staff engagement and by supporting children to become eco-champions. Furthermore, the provider has committed to paying at least the London Living Wage to all staff working on the contract and creating job opportunities that meet this standard. These social value commitments will be monitored as part of the contract management process.

Three delivery options were considered:

• Option 1 – Do Nothing: This was rejected as it would have perpetuated the issue of children being placed outside the borough, lacked control over quality and cost, and did not address Hackney's sufficiency challenges.
• Option 2 – Insource: This option was considered not viable at this stage due to significant financial, regulatory, and operational risks. Hackney currently lacks the necessary internal infrastructure, workforce, and regulatory experience to operate Ofsted-registered homes. Financial modelling indicated higher overall costs, and the reputational and compliance risks of an unsatisfactory Ofsted outcome were also considered significant.
• Option 3 – Commission a Partner Provider: This was the chosen option, enabling Hackney to commission a specialist provider with the required skills and experience. This option allows the Council to retain ownership of the buildings, maintain close oversight through contract management, influence service quality, and achieve better value for money. The partner provider will deliver systemic, trauma-informed, and anti-racist care aligned with Hackney's STAR Practice Model, delivering improved outcomes for children and financial efficiency.

The decision to award this contract is considered a Key Decision and will come into force on the expiry of five clear working days, unless called in by at least five non-executive members.

Noting Previous Minutes

The committee noted the minutes of the Hackney Procurement Board meetings held on 14 April and 12 May 2026. They also resolved that the minutes of the previous Cabinet Procurement and Insourcing Committee meeting held on 13 April 2026 were not approved as a true and accurate record, as the current Members were not present at that meeting.