Wandsworth Council has approved a direct award contract to Hestia for accommodation-based services for adults with mental health support needs, ensuring continuity of care for vulnerable residents.
The decision, made during the Cabinet meeting on Monday 14 July 2025, authorises a contract extension with Hestia for up to three years, spanning from 1 April 2025 to 31 March 2028. The contract is valued at an estimated £1.366 million per annum, totalling £4.098 million plus inflation over the full term.
According to the meeting minutes, the Care Act 2014 mandates local authorities to meet the assessed needs of adults seeking social care, including accommodation-based support. For individuals with complex mental health needs, supported housing offers the safest and most effective way to provide necessary care.
The decision aligns with key priorities outlined in the commissioning review, particularly the 35 recommendations considered by the Health Overview and Scrutiny Committee in September 2023 and subsequently approved by the Cabinet. These recommendations aim to improve service quality, refine commissioning and contracting arrangements, and create efficiencies, as detailed in the Mental Health Commissioning Review Report.
The direct award was made to ensure continuity of care for existing service users and to minimise potential disruption to both residents and the workforce. The report noted that Hestia delivers good quality services that perform well and offer value for money. The direct award also allows sufficient time to implement a broader commissioning strategy and develop new models of care in collaboration with key stakeholders.
The key aims of the commissioning strategy will seek to address long-standing issues related to the quality of the properties and to co-design with key stakeholders a model of care and support that is fully able to meet the increasing complexities that many people experience, promoting recovery and maximising their independence.
Alternative options were considered, including delivering the services in-house, spot-purchasing services, and undertaking a fully competitive tendering process. However, these options were deemed less suitable. The council lacks the resources, infrastructure, and expertise to deliver these highly specialised services in-house. Transferring the services in-house would cause significant disruption to the workforce, be resource intensive, and potentially divert too much focus away from the care and support of the residents. Previous benchmarking indicates that in-house provisions are typically more expensive.
Councillor Henderson, Cabinet Member for Health, noted that the decision is consistent with the commissioning review, aiming to improve services and ensure suitable properties for people with mental health needs. The council estimates a 6% increase in residents experiencing mental health issues by 2040, making proactive measures essential.
The Equality Impact Needs Analysis (EINA) completed in October 2024 highlighted that the population of people with mental health needs living in Wandsworth is expected to increase by 6% by 2040, with the highest growth projected within the age categories of 55-64 years. The EINA also noted that most service users are male (56%) and from White (47%) or Black or Black British (37%) backgrounds, highlighting the importance of culturally sensitive and inclusive service delivery.
The cabinet also discussed a range of other issues at the meeting, including the Corporate Plan Action Plan, financial results, and the Wandsworth Growth Plan.
