Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: October 15, 2025

Purpose: This item seeks approval from the Mayor and Cabinet to initiate a recommissioning and tender exercise leading to the award of a new Young People’s Supported Housing Pathway from 1st of June 2026. The current Tower Hamlets Children and Young People’s Supported Housing Pathway (CYPSHP) is designed to provide accommodation and support services to young people (YP) aged 16 to 21 (up to 25 depending on needs), who are in and on the edge of care, such as looked-after children (LAC), care leavers and homeless YP. The Pathway is a mechanism for the Council to meet its legal duties under the Children’s Act 1989 and the Housing Act 1996. The council has full nomination rights to all properties and works collaboratively with the service providers to ensure that our young people are placed in suitable accommodation with sufficient hours of housing related support to meet their needs. The duration of the contract will be a 3 years + 1 year + 1 year term (5 years maximum) to provide stability for the service, facilitate improvement, and to meet anticipated future demand throughout the term of the contract.  

Content: DECISION   1.     Approves the re-procurement of the Tower Hamlets Children and Young People’s Supported Housing Pathway (CYPSHP) contract for 3 years plus with the option for two 12-month extensions from 1st of June 2026 with an annual value of £1,783,325.   2.     Authorises the Corporate Director Children services in consultation with the Deputy Mayor and the Mayor the ability to award a contract to the Best Value bidder or bidders as required in each lot demonstrated by the results of the procurement exercise referred to in Recommendation   3.     Notes the specific equalities considerations as set out in Paragraph 4.1 

Reasons for the decision: The current contracts for the provision of housing related support in the Children and Young People’s Supported Housing Pathway are due to expire on 31st May 2026. A decision from the Mayor and Cabinet is required to ensure that the service is recommissioned in line with the proposed procurement timeline and for the start of new contract.   The main objective of this re-procurement exercise is to ensure continuity in the services currently available, to maintain the placement stability of the children and young people currently living in the Pathway while ensuring that the Council meets its statutory duties.   To ensure continued and high-quality services for our most vulnerable children and young people. 

Alternative options considered: A transition to spot purchasing accommodation services for 16/17-year-olds and young people aged 18-25 who are in and on the edge of care or homeless is the alternative option to the pathway. This option comes with several risks and issues:   The cost of temporary accommodation is considerably higher than the pathway. The cost of a commissioned pathway service with 24-hour on-site support is £345 per week. The least expensive spot purchase spot purchase placement with 24-hour staff on site was £895 per week. The median cost for accommodation with support 24 hours per day was £1,274 per week.   If provision is transitioned to spot providers it introduces risks in that the Council will not be able contract manage, and quality assure their services as closely and comprehensively as is currently the case with the commissioned providers. It also limits the opportunities to build relationships with providers and develop more flexible, specialist and good value services that meet our children and young people’s changing needs.    Temporary accommodation is predominantly outside of Tower Hamlets. This removes the young person from their support networks that are essential for their emotional wellbeing, safety and security. Typically, temporary accommodation does not include housing related support therefore young people placed in that accommodation would be unable to access the support to improve the life skills necessary for them to sustain a tenancy when they eventually move on from supported accommodation to commence living independently.   At age 18, a young person transitioning from temporary accommodation to the Adults supported accommodation pathway presents potential safeguarding risks particularly due to interactions with adults who have complex needs. This raises significant concerns around their safety, emotional well-being, and the developmental appropriateness of the environment.   To not provide accommodation for the children and young people covered by the current pathway is not a viable option as we have a statutory duty to provide them with support and accommodation.