To seek approval to commission, by means of a competitive tender process, an accommodation based housing related support service and housing related floating support service.  Two separate but related contracts are commissioned currently through Home Group and are due to cease on 31 August 2019.

The services are commissioned as part of the council’s approach to preventing and relieving homelessness. Accommodation based support is offered currently from two premises in Hereford, at Pomona Place and Bridge House, with a total of 31 units or places. Floating or outreach support is provided to around 75 people to help them sustain their existing living arrangements or move on. Both services are transitional and support people, who are in housing crisis, to be more independent and manage their own tenancy in the future, through promoting self care, financial and domestic skills and access to training or employment.

A soft market exercise has been conducted to assess capacity for continuation and development of services and it has demonstrated considerable market interest, including among providers holding local housing stock. Delivery of accommodation based support requires access to more than 30 units of accommodation, suitably configured and located and this will be a critical factor in the viability of tender bids.

The services are for people who are homeless or threatened with homelessness and have a priority housing need. Accommodation based support is available only to single adults and in practice, the majority of those supported are ex-offenders or have mental health and/or substance misuse needs.  A small minority are sometimes identified to have a military background.   In the light of continuing high demand for accommodation based support, it is proposed to seek up to 35 units as part of the new contract, representing an increase of up to 16.5%, without any additional cost to the council.

The mobilisation of accommodation based support services can be particularly complex and time consuming and the procurement process is therefore planned to conclude early in 2019.   

That:

(a)        the commissioning of an accommodation based support service through an open procurement process be approved, for a period of up to five years from 31^st August 2019, with  a maximum total cost of £1.39m; and

(b)        the commissioning of a floating support service through an open procurement process be approved, for a period of up to five years from 31^st August 2019, with a maximum total cost of £553k; and

(c)        authority be delegated to the acting director for adults and communities to award contracts for accommodation based and floating support services, following the completion of procurement processes.

1.          The services are not re-commissioned.  This option is not recommended as both contracts support vulnerable people with significant needs who are homeless or at risk of homelessness with substance misuse, offending behaviour and/or mental health issues.  The impact of not providing either service would result in an increase in rough sleepers and homelessness applications to the council and growing use of temporary accommodation. 

          Generally, where the accommodation based support service is full, people will be placed in B&B, with the attendant risks and costs.  If the accommodation based service were to close, all the occupants and all people newly referred would need to go into B&B.  A proportion would become excluded from B&B and may become rough sleepers. In addition to the absence of support and the likely poor outcomes for people, this level of demand could harm the fragile ecology of the council’s network of B&B provision.

          There would also be a risk of increased offending behaviour, hospital admissions or anti-social behaviour, with associated financial pressures for the council and other public services.

2.          The contracts with the existing provider are extended. This option is not practicable since the provider, Home Group has indicated that it can only continue to offer the services until 31 August 2019. It has revised its business approach and will no longer be providing homelessness services.