North Yorkshire County Council

 

Health and Adult Services

 

Executive Members Meeting

 

8th August 2025

 

REPORT TO Corporate Director of Health and Adult Services (HAS) in consultation with the

Executive Member for Health and Adult Services

 

Extension and Variation of Supported Housing Services for Offenders

 

 

1.0          Purpose Of Report

 

To seek approval for the extension and variation of Offenders Supported Housing Services (known as RACSS)

 

 

 

2.0          Executive Summary

Health and Adult Services in partnership with the National Probation Service (NPS) commissions supported housing services for High and Medium risk offenders where the risk of reoffending is related to the person’s ability to maintain a tenancy. These services are known as RACSS (Resettlement and Community Safety Scheme).

 

This paper seeks approval to enter into an additional 1-year extension out of scope, and to apply a negotiated uplift to the contract to reflect additional cost pressures beyond those initially anticipated in the tender.

 

3.0          Background

 

3.1          Service Background

RACSS is a countywide housing related support service for high and medium risk offenders.  The purpose of the service is for those individuals supervised by the Probation Service-Yorkshire and Humber (PS-YatH) to maximise their potential for independence, sustain accommodation, access employment and significantly reduce the risk of re-offending.

 

The service provides supported accommodation under a property management arrangement for up to 2 years, plus short-term focussed support based on the individual’s needs.  This will include empowering individuals to develop self-advocacy skills to further independence including:

·         support to develop housing related and financial skills

·         signposting and support to engage in services and activities to improve physical and mental well being

·         encouraging social and family relationships

·         enable access to employment, education and training

NYC commissions Foundation UK and Changing Lives to provide the service, and units (housing with support) are located across the county.

 

3.2          Contract

 

The contract was procured by NYC on behalf of the Council and NPS on a 3 year + 1 year term commencing 1st October 2021.

 

On commencement the contract comprised 3 service Lots:

Lot 1 - core funding of £243,478 per year from NYC to secure 60 units of supported accommodation,

Lot 2 - 1 year Lot based to secure 10 units of supported accommodation from non-recurrent funding of £39,390 from NPS as the ongoing status of this funding as not known at the time due to changes within the Probation service.

Lot 3 – A linked but separate service for substance use supported housing, fully funded by NYC. This Lot was added to the RACSS procurement due to the low value and small number of units.

 

At the end of the first year of the contract NPS confirmed that ongoing funding would be available for the service and as a result the £39,390 and 10 units allocated to Lot 2 was added to Lot 1 for the remainder of the contract via contract variation, Lot 2 ceased at the end of the first contract year.

 

A key decision to enter into the final permitted extension from September 2024 – September 2025 was taken in September 2024; at this time the intention was to finalise reprocurement work in time for a new service to be in place for September 2025.

 

3.3          Performance

Joint review meetings take place quarterly with PS- YatH to evidence the steps taken by Foundation to deliver successful outcomes for individuals in receipt of the service. Individuals accessing the service are living less chaotic lives with numerous case studies and examples of where the service has supported people to break cycles of offending behaviour.

 

Probation view the RACSS service as a positive way of managing high risk individuals and have identified additional funding to maintain and increase activity levels for years 2 to 4 of the contract.

 

Prison leavers without stable accommodation are almost 50% more likely to reoffend again per Yorkshire and the Humber Reducing Reoffending Plan, 2022-25, Reducing Reoffending Plan 2022-25 for Yorkshire and the Humber (publishing.service.gov.uk)

 

4.0 Extension

 

The council has made additional funding available for the provision of supported housing through an allocation drawn from the Second Homes Council tax premium. This will allow successor services to RACSS to potentially be significantly expanded both in terms of the numbers of people supported and the complexity of those individuals’ circumstances.

 

In order to maximise this opportunity, additional time is required to successfully complete a full commissioning process. As such, it is proposed that an additional 1-year extension out of scope is approved to allow for this work to be undertaken and ensure that the full benefit of the additional funding is felt.

 

The contracts were let with 0% annual uplift in 2021, this position was held until September 2024 when uplifts were applied to some Lots of the contract based on provider feedback. As the proposed extension is out of the initial scope of the procurement, it is reasonable that providers have asked the council to consider an additional uplift for the final year of the contract. The Council has worked through a detailed process with the provider to understand the need for additional funding, including:

 

·         Initial bids assumed 2% year on year inflation and as such this must be absorbed within the original bid cost for the initial term of the contract.

·         Staffing and pay levels within the provider have been reviewed to ensure the Council is receiving best value.

·         Robust contract management has ensured HAS are aware of gaps in staffing and other areas of underspend which need to, and have been, utilised prior to any additional uplift

 

Following this process and a period of negotiation it is recommended that the following uplifts are applied:

 

 

Offenders Supported Housing (RACSS)

 

Substance Use Supported Housing 

 

 

4.2 Alternative Options Considered

 

The alternative to applying an uplift to these contracts would be to reduce the number of units available by 3-5 units. This would reduce the ability of the service to support individuals and promote good outcomes.

 

5.0          Financial Implications

 

 

The full year effect of the changes will be £12,795, this is within the allocated budget for the service.

 

 

6.0          Legal Implications

The above proposal has been approved by Procurement Assurance Board and as such legal and procurement risks have been considered and addressed. The proposed extension is permissible under Regulation 72 of the Public Contract Regulations 2015.

 

 

7.0          Conclusion and reason for recommendation/s

 

Supported Housing continues to deliver a strong service which supports offenders to reintegrate into communities on release and reduces rates of reoffending. This variation and Extension will allow to service to continue at capacity whilst work is completed to reproduce the service from 2025 onwards.

 

8.0       Recommendation/s

 

That the Corporate Director in consultation with the Executive Member approve the variation and extension of the Offenders Supported Housing (RACSS) Service

 

Mike Rudd

Head of Supported Housing

County Hall

 

8th August 2025