Fiona Connolly, Corporate Director of Adults and Health, approved the direct award of a five-year contract to Age UK East London for the provision of a Home and Settle Service. This decision was made following a review of the service's performance and its alignment with the council's corporate priorities.

Home and Settle Service

The Corporate Director of Adults and Health, Fiona Connolly, approved the direct award of a five-year contract, with two optional one-year extensions, to Age UK East London for the provision of a Home and Settle Service. The contract, which is set to commence on 1 July 2026, has an estimated total value of £600,000 over the five-year period. This decision was made under Direct Award Procedure C of the Provider Selection Regime (PSR) regulations.

The Home and Settle Service supports residents aged 18 and over who live alone and have low to moderate social care needs. Its primary function is to assist these individuals in settling back into their homes and routines after being discharged from hospital. The support provided can include ensuring the home is adequately lit and heated, obtaining immediate food shopping, preparing meals, light housekeeping, and assisting with minor repairs or the installation of small aids such as handrails. The service also aids in medication self-management and supports residents in regaining confidence in their self-care abilities, with referrals to the Falls Prevention Service where appropriate.

The service has been in place since 2014, with the current contract awarded in June 2021. The decision to directly award the new contract to Age UK East London was based on the provider's satisfactory performance, with a consistently low hospital readmission rate of approximately 3% within 90 days. Resident surveys indicated a high level of satisfaction, with 93% reporting being very satisfied or satisfied, and 90% believing the service represented a good use of public money. Professionals also reported that the service provided significant benefits, including freeing up therapists' time and acting as a trusted point of contact for signposting to other community services.

Despite the service's success, Age UK East London indicated in January 2025 that they could no longer deliver the service within the existing budget. An uplift in the contract sum was provided by the Northeast London Integrated Care Board (NEL ICB), alongside a reduction in service delivery days, times, and the number of residents supported. The report noted that these changes had not negatively impacted hospital discharge flow or residents.

The direct award was deemed acceptable under the PSR regulations because there was no significant change to the scope or value of the service, and the incumbent provider's performance was satisfactory. The council considered decommissioning the service but concluded it provides vital support. A full procurement exercise was also considered but discounted due to limited interest in previous procurements for similar services and the fact that only two providers, Age UK and the Red Cross, operate such services across the NEL footprint.

Financially, the new five-year contract will total £0.600 million, averaging £0.120 million per year. Funding for the service will transition from the Better Care Fund to the Public Health Grant from April 2026, with the budget already allocated to cover the annual cost. This transfer gives the council full responsibility and greater control over commissioning decisions. Potential financial risks related to inflation, staffing, and increased referral demand are considered manageable through contract monitoring.

Legally, the decision is supported by various council powers, including Section 111 of the Local Government Act 1972 and Section 1 of the Localism Act 2011. The procurement complies with the Provider Selection Regime Regulations 2023, specifically Direct Award Route C, as the contract is expiring, the existing contractor is performing satisfactorily, and the considerable change threshold is not met. The council's contract standing orders, which typically require open tender for contracts of this value, will be waived for this direct award, as permitted by procurement regulations. The council is required to publish a notice of intention to award and observe a standstill period before signing the contract.

The service directly supports Priority 1 of the council's Corporate Plan, 'A healthier Newham and Ageing Well', and indirectly supports Priority 2, 'Newham's inclusive economy'. The decision also considered the Public Sector Equality Duty (PSED) under the Equality Act 2010, ensuring due regard for eliminating discrimination and advancing equality of opportunity.

The decision was made by Fiona Connolly, Corporate Director of Adults and Health, in consultation with Councillor Susan Masters, Cabinet Member for Adults, Health and Environment. The proposal was also presented to and agreed by the Urgent Care Working Group.