Issue - meetings

Report CS16022

The Portfolio Holder presented a report outlining a gateway review undertaken of the Tenancy Sustainment Service and recommending that the service be market tested with a view to letting the contract with a lower volume of activity.

The Tenancy Sustainment Service worked to prevent homelessness by providing support to tenants of social housing in Bromley who were at risk of losing their tenancies from across all vulnerable adult groups, and to up to nine service users in a supported accommodation scheme for ex-offenders.  The existing contract for this service was awarded to Hestia Housing and Support following a competitive tendering exercise in 2013 and was extended for one year from 1^st October 2015 to 30^th September 2016 via an exemption from tendering agreed by the Portfolio Holder for Care Services pending decisions on the Supporting People budget. 

The Gateway Review had considered three options for the future delivery of this service which was not a statutory requirement but which reduced pressure on the Housing Division and Temporary Accommodation budgets by promoting tenancy sustainment and to prevent homelessness.  These options included Option One, which was to cease providing the entire service, and Option Two, which was to only fund the supported accommodation service for ex-offenders, which would maximise the level of savings made but would also be likely to result in increased costs relating to homeless applications, evictions and rent arrears.  Officers recommended Option Three be progressed which was to reduce the funding available to the overall service whilst retaining the supported accommodation scheme to ex-offenders, saving £150k per annum.  The reduced service, which would offer support to 100 users at any one time, would be market tested to ensure value for money and would prioritise work with people at imminent risk of homelessness.  All contracts would include a break clause which enabled the Local Authority to give three months’ notice to terminate the contract.

RESOLVED that the Portfolio Holder be recommended to:

1)  Progress Option Three which proposes to reduce the funding for the overall service whilst retaining the supported accommodation for ex-offenders;

2)  Agree that Officers undertake market testing on the delivery of the tenancy sustainment service at the reduced level of activity of 100 users at any one time; and,

3)  Agree that the contract award will be for three years from 1^st October 2016 with an optional extension of one year, with authority to extend the contract delegated to the Chief Executive in consultation with the Portfolio Holder for Care Services.