Extra Care services are currently delivered by two providers in six schemes. The contract was due to run until 1 April 2027. Work had begun on re-procurement with a timetable that included a report to the Overview and Scrutiny Committee and seeking approval from the Cabinet in September 2026. Then one of the two current providers formally served notice and cannot continue operating beyond the end of October 2026. It has lost key staff and stated that it will not recruit additional staff due to the financial viability of the service.
This affects 3 Extra Care schemes which supports c. 120 people (of which 108 are funded by Adult social care).
The service provides regulated personal care in an accommodation setting.
Without a contracted provider the Council would not be fulfilling its statutory duty and would leave those service users in a vulnerable position.
Th contract value is c. £2m per year (£8m across the duration of the 4-year arrangement should all available extensions be taken).
It was therefore requested to commence procurement activity immediately and seek a new provider to be fully operational by 1 November 2026. This allows time for a compliant procurement exercise in line with Contract Procedure Rules (CPR) and TUPE considerations for staff.
To ensure this is in place the procurement needed to commence in the week commencing 27 July 2026.
To further expedite the process, the tender opportunity will have requirements that ensure only providers able to deliver and mobilise swiftly are considered.
The contract for the second provider will run until 31 March 2027 so there is a longer mobilisation period for the successful tenderer for this Lot.
Decision type: Non-key
Decision status: Recommendations Approved
Notice of proposed decision first published: 29/07/2026
Decision due: 21 July 2026 by Chief Executive
Contact: Jane Moore Email: jane.moore@leics.gov.uk.
Consultation process
Departmental Management Team (Adults and Cultural Services Dept.)
Commissioning Support Unit - Project Initiation Document completed to be reviewed by the Corporate Procurement Board.
Current providers.
Landlords.
Tenants.