Proposed decision –Extend the Learning Disability, Physical Disability and Mental Health Needs Residential Care Contract for a period of two years (from 15 June 2026 to 14 June 2028)
Reason for the decision
Work is underway to commission a contract which encompasses both residential and supported living options, to allow a flexible transitional pathway to support people to maximise their independence.
The extension will maintain service continuity for people with learning disabilities, physical disabilities and mental health needs while the Council undertakes recommissioning to implement a more integrated and sustainable model of care. This approach avoids disruption, supports value for money, and provides flexibility during the transition.
The current Supported Living Contract is due to end on 14 June 2026 and in order to align the recommissioning activity it is proposed to extend the Learning Disability, Physical Disability and Mental Health Needs Residential Care Contract for a further two years, using the permissible contract extensions, to support development of the new joint Supported Accommodation Contract.
The new Supported Accommodation Contract is expected to commence by June 2027. On this basis, it is anticipated that only one year of the proposed two year extension for the Residential Care Home Services (Learning Disability, Physical Disability and Mental Health Needs) will be required.
However, approval of a two-year extension provides the necessary assurance and flexibility, ensuring continuity of care in the event of any delays to the implementation of the new contract. This approach mitigates the risk of service disruption and avoids the need for a further key decision, while supporting a stable and well-managed transition to the new Supported Accommodation model.
Background
The current Learning Disability, Physical Disability and Mental Health Needs Residential Care Contract covers residential homes for working age adults with learning disabilities, physical disabilities or mental health needs. Residential care provides 24 hour support for daily living activities, personal care, medicines management and social inclusion. Nursing homes on this contract also offer clinical support which is provided by registered nurses.
The models of delivery for both supported living and residential care will be reviewed to inform current delivery and future commissioning arrangements, to ensure the Council is achieving value for money and commissioning the least restrictive support options in line with the Care Act 2014.
Options (other options considered but discarded)
The Council can choose not to extend the contract, however this would not give sufficient time to establish a new model of delivery, which would be sustainable for both the Council and social care providers.
How the proposed decision supports the Council’s Strategic Statement
The proposal to extend the current Learning Disability, Physical Disability and Mental Health Needs Residential Care Contract will support development of the new joint Supported Accommodation Contract, to meet the priorities set out in the Council’s Strategic Statement by providing a new delivery model to support the use of technology and digitally enabled care to meet people’s support needs, provide opportunities to explore jointly commission services with Integrated Care Boards and develop an outcome focused model to support people to achieve their aims and develop their independence.
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 13/01/2026
Decision due: Not before 11th Feb 2026 by Cabinet Member for Adult Social Care and Public Health
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Cabinet Member for Adult Social Care and Public Health
Lead director: Sarah Hammond
Department: Social Care, Health & Wellbeing
Contact: Marie Hackshall, System Programme Lead Kent and Medway – Learning Disability, Autism and ADHD.
Consultees
The proposed decision will be discussed at the Adult Social Care and Public Health Cabinet Committee on 21 January 2026
Financial implications: The current cost of the contract (from June 2019 to the end March 2026) is £427,407,103. The annual cost of the contract is £86,505,815 per annum and for the proposed two year extension the cost will be £173,011,630. All placements are funded from the adult social care budget.
Legal implications: The additional two-year extension is available within the current contract and was included in the Prior Information Notice (PIN) advertising the tender opportunity in 2019. Therefore the extensions are compliant with the previous PCR 2015 Regulations which were in place at that time. Under the Procurement Act 2023, Councils are required to use framework contracts, limiting the use of individual or spot purchase agreements.
Equalities implications: Equalities implications An Equality Impact Assessment (EQIA) was completed as part of the original tender exercise. The EQIA has been reviewed and is still relevant as no changes to the contract are being made during the further extension period. Data Protection implications A Data Protection Impact Assessment (DPIA) was completed at the time of tender and there are no new data protection implications to be considered.