Purpose

Cranstoun Sandwell is the council’s
commissioned provider for core drug and alcohol treatment services,
delivering evidence-based interventions that support recovery,
reduce drug-related harm, and meet national drug strategy targets.
The service plays a critical role in improving public health
outcomes, reducing offending, and safeguarding vulnerable
individuals.

The proposed variation to the Cranstoun Sandwell core contract is
driven by the need to maintain the stability, capacity, and quality
of Sandwell’s drug and alcohol treatment system in line with
our statutory duties and national drug strategy commitments.

Cranstoun has been delivering high-performing, evidence-based
interventions that support recovery, reduce drug-related harm, and
improve public safety.

The increase in employer National Insurance contributions, mean
that without action the provider will face unavoidable cost
pressures. The proposal was a £45,246 uplift to the 2025/26
budget to meet increased NI costs, protecting service capacity and
quality;

The Council wishes to amend the payment schedule for the core
contract to monthly in arrears with quarterly reconciliation,
improving provider cashflow and reducing delivery risk.

These changes will be delivered within existing governance
arrangements, with performance monitored through our contract
management framework, ensuring accountability.

Content

Resolved:-
That it is recommended to vary the core contract with Cranstoun
Sandwell to:
(1) Increase the budget for 1 April 2025 to 31 March 2026 by
£45,246.00 to cover the increase in employer National
Insurance contributions;

(2) Utilise the second permissible extension year of the core
contract covering the period 1 February 2027 to 31 January
2028;

(3) Change the payment schedule for the core contract as well as
the integrated placement and support and DATRIG elements from
quarterly in arrears to monthly in arrears with quarterly
reconciliation.

Alternative options considered

Option 1 – No uplift, no extension, no
payment change
Maintain the current budget, term, and payment arrangements. While
this avoids any additional financial commitment, it leaves the
provider absorbing rising costs, which may reduce capacity and
quality, jeopardising delivery against national drug strategy
targets and risking service disruption.

Option 2 – Partial changes (e.g., extend only, change payment
schedule only, or uplift only)
Make one or two of the proposed changes without adopting the full
package. These options may address some issues (e.g., cashflow or
long-term continuity) but would still leave cost pressures
unresolved or create uncertainty over future provision. This risks
reduced performance, strained provider relationships, and possible
service gaps.