URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2544

Decision Maker: Executive Mayor

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: This report is to bring forward the decision to develop a home for children with complex needs in South Norwood.   The report will detail the expenditure and funding proposal to convert the asset into a home for children with complex needs and will include a business case showcasing financial and non-financial benefits to the Council and service users. The report will also seek approval to go out to tender for the construction works and to go out to tender for the service provision to find a provider to run the home and deliver registered services.  

Content: This report is to bring forward the decision to develop a home for children with complex needs in South Norwood.   The report will detail the expenditure and funding proposal to convert the asset into a home for children with complex needs and will include a business case showcasing financial and non-financial benefits to the Council and service users. The report will also seek approval to go out to tender for the construction works and to go out to tender for the service provision to find a provider to run the home and deliver registered services.   1.    To delegate to the Corporate Director for Children Young People and Education (CYPE), in consultation with the Corporate Director of Resources and S151 Officer, to accept the Department for Education’s (DfE) offer of grant funding (£780,000) subject to review of and approval of terms of the funding agreement.   2.    To note that, once the funding agreement has been executed,the commissioning of appropriate contracts for:   -       Delivery of construction works by contractors and associated services including appointment of a design team to develop and refurbish the home site for its proposed use, as set out in this report, shall be procured in accordance with the requirements of the Contract Standing Orders and relevant procurement legislation.   -       A provider to run the home and deliver registered services shall also be undertaken in accordance with the requirements of the Contract Standing Orders and relevant procurement legislation.   Section 22 of the Children Act 1989 establishes the general duty of local authorities regarding children in their care and the safeguarding and promotion of their welfare. This duty underpins all local authority activity involving looked after children.   Section 22G of the Children Act 1989 (‘the 1989 Act’) requires local authorities to take steps that secure, so far as reasonably practicable, sufficient accommodation within the authority’s area which meets the needs of children that the local authority are looking after, and whose circumstances are such that it would be consistent with their welfare for them to be provided with accommodation that is in the local authority’s area (‘the sufficiency duty’). The Sufficiency Duty set out in Care Planning and Review Regulations 2010 makes it every local authority’s duty to provide sufficient accommodation for children looked after in their area.   Reduced use of high-cost unregistered homes and Deprivation of Liberty Standards (DoLS) orders. Since November 2023 12 children who had a DoLS order made for them were placed in unregistered accommodation. Because of the complexity of needs, unregistered provision can typically cost between £10,000 - £15,500 per week.   The specialism of this provision and the nature of it being comprised of three solo homes would be to enable Deprivation of Liberty Standards (DoLS) restrictions to be safely provided within a local home; a need that is clearly evidenced through our current reliance upon unregistered provision for children with high levels of safeguarding need. This is also in line with forthcoming changes to Ofsted regulation of DoLS arrangements.   Improved outcomes for some of our most vulnerable children - avoid the need to apply for DoLS orders, reduce isolation and institutionalisation and quickly start to work with children and their families on targeted, evidence-based therapeutic interventions that enable safe step-down from residential care to less costly provision with better outcomes for families and individuals.    Increased proportion of children with complex needs placed locally, thereby maintaining local connections, access to local partner services, family relationships and lower cost provision of council services to them.   The funding will support the Council’s priorities (Mayor’s Business Plan and Future Croydon – the Council’s Transformation Plan 2024 – 2029) and the Stabilisation Plan as detailed in Section 5 of this report.   Sale of the property has been explored as an alternative; the ongoing financial benefit this would achieve is less than the anticipated revenue savings of turning the property into a children’s home as described in this report.   Do nothing. Continue to purchase Children’s Home care from the open market at market rates, accepting that children will continue to need to live away from their homes. Recent DfE reporting states that the cost of Children’s residential care has risen on average 50% in the last 2 years. This option will not contribute to making savings.   Decline the offer of grant funding – this is not an option as capital funding is needed to develop the home and bring it up to the safety standards that will be required to achieve Ofsted registration.  

Date of Decision: August 13, 2025