The Cabinet Procurement and Insourcing Committee of Hackney Council met on Monday 1 June 2026, where they agreed to award a contract for the commissioning of children's homes in Hackney. The committee also noted the minutes of previous Hackney Procurement Board meetings.

Commissioning Children's Homes in Hackney for Children Looked After

The committee agreed to award a contract to Provider B to deliver residential care and support for children looked after, aged 11-17. The contract will be for a period of five years, with an option to extend for a further two years in annual increments (5+1+1). This decision aims to enhance the quality of experience and care for children looked after by minimising disruption and keeping them connected to their communities, while also delivering savings. The partner provider will work with the Children's Integrated Commissioning Team and Hackney's Children & Families Service Management Team to ensure a high-quality service. The successful provider is committed to reducing its environmental impact and paying at least the London Living Wage to all staff.

The report considered three delivery options:

• Option 1 – Do Nothing: This was rejected as it would perpetuate the issue of children being placed outside the borough and would not address Hackney's sufficiency challenges.
• Option 2 – Insource: This was considered and deemed not viable at this stage due to significant financial, regulatory, and operational risks, as well as Hackney lacking the necessary internal infrastructure, workforce, and regulatory experience.
• Option 3 – Commission a Partner Provider: This was the chosen option, enabling Hackney to commission a specialist provider with the required skills and experience to operate the homes. This option was approved as it delivers improved outcomes for children and financial efficiency.

The procurement process involved extensive engagement with care-experienced children and young people, internal stakeholders, ward councillors, and local communities. Key messages from young people, such as the importance of personalising rooms and staying close to friends and family, were incorporated into the service design. The new homes have been named Blossom House and Starbright House.

The procurement process was rigorous, with a re-tender undertaken after initial complaints. The evaluation criteria included quality (70%), social value (15%), and price (30%). Provider B achieved the highest overall score of 91%, with a quality score of 52%, price score of 30%, and social value score of 12%.

The contract will be managed by the Senior Commissioning Manager in the Children's Integrated Commissioning Service, with oversight from the Head of Commissioning and Head of Corporate Parenting. Key Performance Indicators (KPIs) will cover quality of care, education, employment, outcomes for children, health and wellbeing, social and emotional development, service management and efficiency, and children's voice. The contract also embeds Hackney's STAR practice model, focusing on systemic, trauma-informed, and anti-racist practice.

The estimated total value of the contract is up to £15.1 million over seven years, with an anticipated cost avoidance of approximately £2.1 million over the contract term. The Council will retain ownership of the two Council-owned properties, which will be made available to the provider on a peppercorn rent basis.

Minutes of Previous Meetings

The committee noted the unrestricted minutes of the Hackney Procurement Board held on 14 April and 12 May 2026. They also resolved that the minutes of the previous Cabinet Procurement and Insourcing Committee meeting held on 13 April 2026 were not approved as a true and accurate record, as the current Members were not present at that meeting.