URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2628

Decision Maker: Cabinet Member for Children and Young People

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Croydon Council was successful with its funding bid to the Department for Education (DfE) under the Complex Needs Open Children’s Homes Capital Investment programme for capital match funding to deliver additional provision for children with complex needs and challenging behaviour, recognised to be a response to complex and ongoing trauma.   Croydon has secured £0.78m to develop a children’s home at a Council owned property in South Norwood. The DfE grant funding is capital funding to refurbish the building and convert it into a home for up to three children, including rooms for care and support staff (key decision number: 0725EM).   The capital works element is Phase 1 of the project and is in design stage.   This report relates to the next phase of the project (Phase 2), which is to commission an experienced Service Provider to run the home and deliver registered services to ensure that Croydon children with complex needs can continue to live within the borough.   The decision required will be to approve the commissioning intentions and procurement strategy detailed in this report, which will lead to the award of a contract to a Service Provider to run the Children’s Home and deliver registered services, for a duration of 7 years with a total contract value of £7,000,000.  

Content: Croydon Council was successful with its funding bid to the Department for Education (DfE) under the Complex Needs Open Children’s Homes Capital Investment programme for capital match funding to deliver additional provision for children with complex needs and challenging behaviour, recognised to be a response to complex and ongoing trauma.   Croydon has secured £0.78m to develop a children’s home at a Council owned property in South Norwood. The DfE grant funding is capital funding to refurbish the building and convert it into a home for up to three children, including rooms for care and support staff (key decision number: 0725EM).   The capital works element is Phase 1 of the project and is in design stage.   This report relates to the next phase of the project (Phase 2), which is to commission an experienced Service Provider to run the home and deliver registered services to ensure that Croydon children with complex needs can continue to live within the borough.   The decision required will be to approve the commissioning intentions and procurement strategy detailed in this report, which will lead to the award of a contract to a Service Provider to run the Children’s Home and deliver registered services, for a duration of 7 years with a total contract value of £7,000,000.   Approve the commissioning intentions and procurement strategy (Route to Market Section 4.7 of this report) for the commissioning of the development of a new Children’s Home in the borough. This contract will be procured under the Light Touch Regime in line with Procurement Act 2023, which will lead to the award of a contract to a Service Provider to run the children’s home and deliver registered services, for a duration of a maximum of 7 years with an aggregate total estimated contract value of £9,009,000.   This option is recommended on the basis that it is the only one that delivers an expertly run home which can deliver effective care and provide value for money to the Council.   The option to deliver the service directly is considered by officers to present operational and financial risks to the Council. Recruiting and managing residential staff, gaining Ofsted registration and managing the service are specialist activities that the Council would need to recruit to deliver. Additional management posts would be required within the council, which will add to overall costs and reduce the savings impact.   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.    Establishing a new children’s home in the borough will reduce pressure on budgets and contribute to the savings plan already outlined in the Medium-Term Financial Strategy (MTFS). Developing internal provision is part of our overall sufficiency pathway and will contribute to meeting savings requirements as part of the Stabilisation Plan.   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.   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 and would require the return of the £780,000 capital grant funding to the DfE.   To deliver the operational service directly, recruiting specialist staff, gaining Ofsted registration and managing the service. It is recognised that operating children’s homes is a specialist activity and that many Local Authorities closed previous children’s homes because of operational concerns and complications. This is reflected in section 3.2 of this report.   None

Date of Decision: December 11, 2025