Hackney Council has approved the commissioning of two new children's homes, Blossom House and Starbright House, which will provide a total of six care arrangements for children with complex needs. The decision was made at a Cabinet Procurement and Insourcing Committee meeting on Monday, June 1, 2026.
The new homes aim to provide enhanced care and support for children looked after by the council, aged 11 to 17, by keeping them closer to their communities and minimising disruption to their education and social networks. This initiative is part of Hackney's commitment to its corporate parenting responsibilities and aims to improve outcomes for its most vulnerable young people. Beyond being kept closer to their communities, specific improvements in care and support expected include raising the quality and standard of care, as the council can directly influence the methodology offered. Minimising disruption is also a key focus, as each move can involve a huge level of disruption to relationships, friendships, education, and other key professional relationships.
The contract, awarded to Provider B, will run for an initial five years with an option to extend for a further two years. The council will retain ownership of the two properties, which will be made available to the provider on a peppercorn rent basis. This approach is expected to deliver savings of approximately £2.1 million over the contract term compared to current 'ad hoc spot purchasing arrangements' for residential placements. The issues with these previous arrangements included a lack of control over quality and cost, minimal influence over placement availability, and perpetuating the issue of children being placed outside the borough. The estimated total value of the contract is up to £15.1 million over seven years, with an average annual contract value of £2.16m.
Provider B was selected based on an evaluation criteria that included quality (70%), social value (15%), and price (30%), achieving the highest overall score of 91%. The procurement process involved extensive engagement with care-experienced children and young people, whose feedback, such as the importance of personalising rooms and staying close to friends and family, was incorporated into the service design. The successful provider is also committed to reducing its environmental impact and paying at least the London Living Wage to all staff. Provider B will prioritise sustainability through energy-efficient appliances, durable materials, environmentally conscious purchasing, and waste reduction. They will also implement child-led energy-saving initiatives, use digital-first systems, prioritise local suppliers, and incorporate energy-efficient lighting, insulation, and water-saving fixtures in the refurbishment of the homes.
During the committee meeting, members noted that insourcing the operation of the homes was considered but deemed not viable at this stage due to significant financial, regulatory, and operational risks, as well as a lack of internal infrastructure and expertise. The chosen option of commissioning a partner provider was approved as it was deemed to deliver improved outcomes for children and financial efficiency.
The new homes are anticipated to be ready for children to move into by early 2027, following Ofsted registration by December 2026. The contract will be managed by Hackney's Children's Integrated Commissioning Team. Key Performance Indicators (KPIs) will be used to measure success across several domains: Quality of care, education, employment and outcomes for children; Health and wellbeing; Social and emotional development; Service management and efficiency; and Children's voice. Specific KPIs include ensuring 100% of children are registered with a GP, have attended a dentist and had an eye test, and are in education, training, or apprenticeship. Safeguarding targets aim for less than 10% of children to go missing from home. The goal is to maintain a good or outstanding Ofsted judgement, with zero enforcement notices. Other targets include 100% of children reporting positive relationships with staff and 100% of children having clear, individualised independent living skills goals in their plans, with 90% or more demonstrating consistent progress against these goals. Targets for staff retention and stability aim for less than 29% staff turnover.
Further details on the committee meeting and decisions can be found in the Public reports pack and Decisions documents.