Councillor Lucia das Neves, Cabinet Member for Health, Social Care, and Wellbeing, approved the direct award of short-term emergency contracts to a new provider to ensure continuity of care services after the current provider entered insolvency. The decision aims to minimise disruption for vulnerable residents receiving supported living, residential care, supported housing, and day opportunities services. The Cabinet Member also agreed to delegate authority to the Director of Adults Social Care to finalise the terms of the award and contracts.

Provision of Social Care Services

Councillor Lucia das Neves approved the direct award of short-term emergency continuity contracts to a new provider for adult social care services, including supported living, residential care, supported housing, and day opportunities. The decision was made following the insolvency of the current provider, which threatened the continuity of care for vulnerable residents and risked breaching the council’s duties under the Care Act 2014¹.

The contracts with the new provider will be for an initial term of one year, from 1 December 2025 to 30 November 2026, with the option to extend for up to a further year. The maximum aggregate value of the contracts is £4.502 million if fully extended, comprising:

• Up to £25,492 per annum for continuation of existing Housing Related Support (HRS) services until the current termination date of 31 December 2025.
• Up to £2.25 million 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. Actual expenditure will be based on assessed needs of each individual and may be lower than the stated ceiling value.

Effective 1 January 2026, where an individual receiving Adult Social Care (ASC) services is assessed as needing Housing Related Support (HRS), the assessed HRS hours will be funded in gross by ASC to ensure continuity of care and streamlined payment processes, with costs subsequently recharged to the HRS service in accordance with agreed inter-departmental protocols.

Councillor Lucia das Neves also delegated authority to the Director of Adults Social Care, after consulting with the Director of Finance and herself, to finalise the terms of the award and the contracts. The council also agreed 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.

Several alternative options were considered, including doing nothing, bringing services in-house on an emergency basis, and procuring a new provider via an open tender. Doing nothing was deemed unviable as the current provider was unable to continue trading. Bringing services in-house was discounted because the council lacked the immediate staffing, CQC² registration, and infrastructure to take on the services within the required timeframe. Procuring a new provider via open tender was also rejected because the timescales required would not allow for a safe transfer.

The report noted that the new provider had been assessed by council officers for service quality, financial standing, workforce capacity, and registration requirements with the Care Quality Commission (CQC). Service users, families, and staff have been informed of the changes, and officers have worked closely with the CQC and other partners to ensure safeguarding and regulatory oversight.

The report also recognised a risk that existing contract prices may need to be renegotiated to ensure long-term viability once the new organisation has taken over operations and conducted a detailed financial review of the services.

The decision was made under the Procurement Act 2023³, which allows for a direct award in circumstances of extreme and unavoidable urgency that preclude a competitive process.

Exclusion of Press and Public

Councillor Lucia das Neves agreed to exclude the press and public from the meeting for the discussion of the exempt report, as it contained information relating to the financial or business affairs of a particular person, as defined in Section 100a of the Local Government Act 1972⁴.