The Cabinet Procurement and Insourcing Committee of Hackney Council met on Monday 8 January 2024, approving the joining of a new Dynamic Purchasing System for independent fostering agencies and the awarding of a new contract for leasehold buildings insurance. The committee also confirmed the minutes from their previous meeting.

Commissioning Framework Homes for Looked After Children and Care Leavers via London Borough of Newham Dynamic Purchasing System

The committee agreed to join the London Borough of Newham's Dynamic Purchasing System (DPS) for the provision of independent fostering agencies. This move aims to ensure that Hackney Council can continue to fulfil its corporate parenting duties, particularly for children requiring specialist support, and to achieve greater efficiency in providing care for looked-after children. The previous arrangements through London Care Services (LCS) ceased in April 2023, leading to increased fee reviews and price increases from providers. The new DPS, which will be in place until March 2026 with an option to extend for a further four years, does not commit the Council to a specific expenditure level but will allow for more arrangements to be made through a formal contractual process. The London Living Wage will be applied across all providers. Hackney Council is already working with 25 of the 27 providers currently on the Newham DPS. The funding previously allocated to the LCS subscription will be redirected to cover the management fee for the Newham DPS.

Provision of Leasehold (Buildings) Insurance

The committee agreed to award a new contract for leasehold buildings insurance to Insurer A. This follows a procurement exercise undertaken between September and November 2023, as the existing contract was due to expire on 31 March 2024. Under the terms of residential leases where the Council is the freeholder, the Council is responsible for arranging buildings insurance for leasehold properties, with the premium being recharged to leaseholders. The insurance market is currently challenging, with market uncertainty leading to increased premiums. Despite this, the procurement exercise aimed to secure the best possible value for leaseholders. Two bids were received, with only one from an established insurance provider being viable. The new contract will be for three years, with an option for a two-year extension at the Council's discretion. The premium cost has increased by approximately 16.5% compared to the expiring contract, resulting in an average increase of around £92 per annum per dwelling, inclusive of Insurance Premium Tax (IPT). The Council will undertake a 30-day statutory consultation with leaseholders before the contract is formally awarded.

Unrestricted Minutes of the Cabinet Procurement and Insourcing Committee held on 4 December 2023

The committee confirmed the unrestricted minutes of the previous Cabinet Procurement and Insourcing Committee meeting held on 4 December 2023 as an accurate record of proceedings. An update was provided regarding the Extension of Temporary Accommodation Dynamic Purchasing System (CED S286), clarifying that the bulk of the contract sum relates to rent payments to landlords and that officers would explore the potential for social value delivery in negotiations with providers.