Decision details

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.