The Cabinet of Westminster Council met on Monday 15 September 2025 to discuss the reshaping of the Housing Solutions Service. The Cabinet approved a hybrid delivery model for the service, which will see certain functions brought in-house from April 2026.

Reshaping of Housing Solutions Service: Phase 2

The Cabinet approved a significant reshaping of the Housing Solutions Service (HSS) with the implementation of a hybrid delivery model. This decision aims to address the dramatic rise in homelessness demand pressures faced by the council, which has seen homeless applications more than double in three years.

From April 2026, the council will bring three key functions in-house: statutory decision-making for single homeless individuals, rent collection from those living in temporary accommodation (TA), and the Private Rental Sector (PRS) placement service. These functions will be directly delivered by the council, aligning with existing structures and offering opportunities for service transformation.

The remaining services, specifically prevention and support for single people, and the property management, compliance, and inspection of TA properties, will be recommissioned from the market. This hybrid approach is intended to balance strategic insourcing with targeted recommissioning, leveraging both council expertise and market specialism to deliver added value and economies of scale.

The decision was made to improve the service user experience, ensure more transparent decision-making, and enhance the council's ability to prevent homelessness. Councillor Liza Begum, Cabinet Member for Housing Services, was instrumental in the discussions surrounding this decision. The report highlighted that the financial implications of the proposed model are expected to be broadly cost-neutral compared to the current delivery costs.

The report detailed the background to the decision, noting that in July 2024, Cabinet had already approved the initial phase of reshaping HSS, which involved bringing frontline housing advice, homeless prevention and support, and the families pathway in-house. This second phase builds upon that by addressing the remaining commissioned services. The council's Homelessness and Rough Sleeping Strategy (2025–2030) was cited as a key policy context for these changes, with a focus on early intervention and prevention.

Arguments for the decision centred on the need for greater control over statutory decision-making, improved customer journeys, and better integration with existing council teams. For example, insourcing rent collection is expected to allow for a more proactive approach with residents. The recommissioning of prevention and support services for single individuals aims to preserve a distinct, community-based support offer, drawing on the expertise of the voluntary and community sector.

The report also acknowledged potential risks, including financial considerations related to recommissioning TA property management, workforce transition challenges, and market instability. However, the council has established a dedicated transformation team to manage these aspects.

The implementation timetable outlines key stages from September 2025 through to April 2026, including the design of the new operating model, consultation with staff, tender evaluation, and the mobilisation of new commissioned services.

The decision was approved by the Cabinet, with delegated approval for the new operating model and associated budget jointly to the Executive Director of Housing and Commercial Partnerships and the Executive Director of Finance and Resources, in consultation with their respective Cabinet Members.

This decision directly contributes to the council's commitment to Creating a Fairer Westminster Delivery Plan and its Homelessness and Rough Sleeping Strategy. The report also noted that an Equalities Impact Assessment (EQIA) had been conducted, identifying certain groups with protected characteristics who are overrepresented among those experiencing homelessness. A full EIA will be conducted as part of the service redesign to ensure these inequalities are addressed.

The meeting also included the approval of the minutes from the previous meeting held on 14 July 2025.