Newham Council is set to expand its mental health supported living schemes with a £1.3 million contract, aiming to provide enhanced support for adults with serious and enduring mental illnesses and offering a more cost-effective alternative to existing arrangements.
The council's Officer Key Decision meeting on Friday 18 July 2025, delegated to Jason Strelitz, Corporate Director of Adults and Health, in consultation with Councillor Neil Wilson, Lead Member for Health and Adult Social Care, approved the commencement of a mini-competition for adult mental health supported living schemes. The mini-competition, commencing in autumn 2025, will be for a period of three years, with the option to extend for two years (1+1). The initiative will introduce two schemes offering 33 self-contained one-bedroom units designed to promote independence and community engagement.
Of the 33 units, up to 10 will offer a Care Quality Commission (CQC) level of support, catering to residents with high levels of need, based on assessments of resident need. The remaining units will provide support for residents to maximise their independence and engage in activities within the community, using a recovery-focused approach. Residents in supported living are encouraged to participate in activities they enjoy, both within the schemes and in the wider community, with staff support provided where needed.
The council currently supports 317 people with severe and enduring mental health needs annually, primarily through spot purchasing arrangements. This new commissioning model aims to give the local authority greater control over the cost and quality of service, formalising arrangements within the Dynamic Purchasing Vehicle (DPV).
Interim contractual arrangements with Look Ahead Care and Support have already established a model of block contracts, improving support quality and delivering savings to the adult social care budget. The new contract, valued at a maximum of £1.3 million per annum, is based on benchmarking activity and existing expenditure.
The proposal aligns with Newham Council's Corporate Plan 2022-26, supporting Priority 1: 'A healthier Newham and ageing well' and Priority 5: Quality of life. It also contributes to '50 Steps to a Healthier Newham', specifically Step 9: Make treatment and support services for people with mental illness more accessible. Resident satisfaction with adult care services will be monitored through contract monitoring to measure the success of the schemes. The schemes are also designed to provide customers with an eligible social care need a service that promotes wellbeing, independence and choice.
Alternative options, such as doing nothing or commissioning each scheme separately, were considered but rejected. The council aims to create a pathway of supported living that residents can move through as appropriate to their needs, working with a single support provider to develop this approach will increase likelihood of success.
The decision was made following consultation with the Lead Member for Health and Adult Social Care on 10 June 2025. Further details can be found in the Public reports pack for the Officer Key Decision meeting.