North Yorkshire Council
Health and Adult Services
Executive Member Meeting
12th December 2025
REPORT TO Corporate Director of Health and Adult Services (HAS) in consultation with the
Executive Member for Health and Adult Services
Procurement of Supported Housing Service for People with Mental Health Needs – Living Independently for Everyone (LIFE)
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1.0 Purpose Of Report To seek approval to commence procurement of a new Supported Housing service
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2.0 Summary
This paper sets out the proposal to procure an enhanced and expanded Supported Housing service which will provide housing related support to people with a broad range of physical and mental health and associated housing needs.
3.0 Background
3.1 Having a secure place to call home is the one of the key foundations of living a healthy and independent life, however for many it is something that can seem unobtainable and more dream than reality. For many reasons, including mental health challenges or a history of substance misuse or offending some people find themselves in a state of moving from one temporary or insecure housing option to another.
3.2 Challenges around maintaining a permanent home often cause people to come into increased contact with services such as Housing, Adult Social Care, Health and Criminal Justice. These interactions are often circular, with people engaged in a cycle of accessing different services who each attempt to address their own specialism, whereas a complimentary and partnership approach is required to understand a break the cycles of behaviour which underpin a person’s actions.
3.3 Supported Housing services aim to address some of the root causes of these issues whilst developing skills and knowledge that will enable people to move on to permanent housing and reducing the need for engagement with services. Supported Housing is non-regulated, short term housing with support which allows people to develop the skills they need to manage their own tenancies and live independently such as:
· Tenancy related support
· Financial planning and budgeting
· Personal administration
· Meaningful activities
· Social networks and relationships
· Health and wellbeing
3.4 3.5 Supported Housing services are delivered as a partnership approach, with people accessing a range of support in addition to the tenancy management functions set out above, the aim being to address the key challenges they face in securing and maintaining their own permanent accommodation.
4.0 Detail of Substantive Issues
4.1 Current Offer
North Yorkshire Council (NYC), currently commissions Supported Housing services in three separate Lots comprising support for people with (1) Mental Health needs, (2) Substance Use needs and (3) a history of Offending, the service offer comprises a mix of Designated Units (where a person is given accommodation in conjunction with support) and Floating Support (where the support is delivered into a person’s existing accommodation).
4.2 At present there are 113 Designated Units (of which 70 are for Offenders and 43 for people with Mental Health or Substance Use needs), and 81 Floating Support Places (all for MH / SU) in place across the County. The service supports people with a broad range of needs but was commissioned as a lower level preventative service and as such is not intended to support people with more complex or specialist mental health needs.
4.3 Performance of the service remains strong. In the last full year for which data is available the service supported 692 people between April 2024 and March 2025. During this period, 157 people moved on from the service, with an average of 85% of those moving on in a positive way i.e. into permanent accommodation with their own tenancy utilising the independent living skills developed within the service.
4.4 Demand for the service remains high with waiting lists in all areas. However, the service has been challenged by the increase in levels of need which has been seen across many areas of social care and mental health in recent years. As such many people being put forward for the service have levels of mental health needs which are well beyond the scope of the service as it was originally specified. Providers and commissioners have worked closely together to manage this and the service strives to support a broad range of people, however where there is stretch into more complex areas this inevitably comes at the detriment of those the service was originally designed to support.
4.5 The impacts of Local Government Reorganisation (LGR) have also been felt, as closer working has developed between Adult Social Care and Housing services, demand has risen as has the understanding of what the service can deliver and how the synergies between services can be maximised.
4.6 The evidence gathered over the lifespan of the existing contract since 2021, shows that demand remains high and outcomes are good. However the demand profile also clearly indicates that a higher level of support is required, alongside and not replacing the existing service level.
4.7 Since April 2025 the Council has levied a 100% premium on Council Tax for Second Homes in the County. The funding raised from this is ringfenced for a range of capital and revenue projects relating to housing. Amongst the items detailed is the commissioning of an enhanced Supported Housing offer based on the existing service and national best practice.
4.8 The remainder of this paper sets out the proposal for this service, including the scope of the service to address the issues outlined above, the levels of investment required and the projected outcomes for people and the Council.
4.9 Proposed Service
The specification has been developed as a collaboration between HAS Supported Housing, and Mental Health teams, Community Development and Public Health to ensure the specification meets the overlapping needs of the services
4.10 Underpinning the service design will be a multi-disciplinary approach to allocations and support. HAS, Community Development, Community Safety, Substance Use Services, Supported Employment, and TEWV amongst other services are committed to joint working in the delivery of this service. This is particularly important given the level of support likely to be required which cannot fall solely on providers to deliver alone.
4.11 The service is intended to expand on the existing Supported Housing offer, both in terms of numbers of people supported and the range and levels of support required.
4.12 The service will be tendered on a 3 year + 2 year + 2 year basis, in two geographic Lots as set out in below.
4.13 Core Principles
The service aims to reduce the risk of homelessness through collaboration at strategic, delivery, and case levels, focussing on: -
· Finding a home for those at risk.
· Sustaining tenancies to prevent evictions into homelessness.
· Supporting stable lives by addressing wider needs including but not limited to Health, care, financial inclusion, and employment - tackling root causes and enabling change.
This is underpinned by multidisciplinary support that addresses a broad range of health-related needs (including substance use, mental and physical health), using trauma-informed approaches, relational and therapeutic interventions.
The key principles of these services are to:
· Support people to stay healthy, safe, and well in their communities.
· Help individuals remain in their own homes wherever possible.
· Provide a safe place to live for those who cannot stay at home and support them to return or secure a new home quickly.
· Build resilience to promote independence and reduce long-term reliance on services.
· Offer high-quality information and advice.
· Deliver flexible services that can respond effectively in times of crisis.
· Reduce pressure and demand on health, social care, and housing systems, including avoiding hospital or residential care admissions.
The service will contribute to public health outcomes by addressing some of the wider determinants of health and acting as a protective factor. These key principles are:
· Support people to live independently in their own homes and communities.
· Provide holistic, wraparound support in the home to improve health, wellbeing, and independence.
· Ensure people are informed and involved in decisions at every stage.
· Empower individuals to build resilience and make informed choices.
· Deliver personalised support that promotes safety, security, and meets individual needs.
· Protect people from avoidable harm and abuse.
· Foster effective partnerships across housing, financial, substance use and health services.
· Prioritise personalisation, choice, and control in service delivery.
4.14
Core Functions of the Service
Delivered through an integrated and flexible model, these functions
are designed to meet and deliver the service’s aims and
outcomes described in the specification:
Assessment and Triage
· Conduct integrated initial assessments with key partners (Housing Needs, Adult Social Care, Mental Health, Substance Use, Community Safety) to ensure the individual does not have to repeatedly share their detailed information and a holistic approach is taken.
· Determine accommodation and support needs and triage individuals into appropriate properties and support within the scheme, referring and supporting people’s engagement with support and service beyond the scope of this contract.
Support and Accommodation Offer
· Provide a range of accommodation and support options for people with single or multiple disadvantage needs.
· Include trauma-informed, multi-disciplinary approaches in high-quality, psychologically informed environments.
· Offer both designated properties and floating support in people’s own homes.
Preventing Evictions
· Work with partners to prevent evictions and comply with the Prevention from Evictions Protocol.
· Where eviction is unavoidable, work with partners to manage risk (of harm) and identify alternative accommodation, providing harm reduction information, advice and interventions as appropriate.
Support to Find Longer-Term Accommodation
· Work with individuals to address their needs to evidence their ability to manage a tenancy, resolve qualification barriers for North Yorkshire Home Choice or if needs are greater access supported living.
· Use a standardised approach with agreement from Home Choice such as resettlement to assess readiness for move-on.
· Work with NY Home Choice partnership to develop resettlement plans.
· Collaborate with Housing Needs and system partners to help individuals secure sustainable long-term housing.
· Avoid prolonged (i.e. more than 24 month) stays in supported accommodation to prevent dependency.
Move-On and Resettlement Support
· Support individuals transitioning to independent living in a planned way.
· Focus on sustaining accommodation, reducing ongoing support needs, and preventing repeat homelessness.
4.15 Contract Lots
4.16 The current provision of Supported Housing is delivered in 7 Lots, based on the former District and Borough Council boundaries. Whilst this arrangement made sense prior to Local Government Reorganisation in 2023, moving forward a different model is required.
4.17 The current contract arrangement of 7 Lots has created significant pressures in smaller areas such as Selby and Craven which each account for approximately 8% of the population of North Yorkshire, against larger areas such as Harrogate (26%) and Scarborough (18%). These smaller Lots have struggled to maintain viability and there has been a degree of cross subsidy between Lots managed by the same provider.
4.18 It is therefore apparent that larger Lots are required which provide scale whilst reducing management overheads both for Providers and the Council. Engagement with the market, as well as existing knowledge of services has shown that a single Countywide Lot would be too large for a provider to manage and would introduce significant levels of risk in the event of provider failure, as such it is proposed that the service will be delivered in two large geographic Lots as set out below.
4.19 The majority of demand for Supported Housing services is focussed on Harrogate and Scarborough towns, both as major centres of population but also as areas where homelessness and rates of mental health need are higher. As such, it is proposed that Harrogate and Scarborough will form the nucleus of two contract Lots as follows:
Lot 1: Harrogate, Craven, Selby
Lot 2: Scarborough, Ryedale, Hambleton, Richmondshire
4.20 Whilst Harrogate and Scarborough towns do see significant demand, it is important that a service does not become a self-fulfilling prophecy, whereby services are put in place which generate or attract those that require that service. Levels of Supported Accommodation across many service types (adult social care, children’s social care, homelessness etc) are focussed in the Harrogate and Scarborough areas, but this in itself can create cycles of dependency and also not create the opportunity for people to pursue a new start elsewhere in North Yorkshire if that is what they want and would be of benefit to them. Key areas of demand (e.g. Catterick and Skipton) outside the main towns will be identified on an ongoing basis and prioritised for service growth between providers and commissioners.
4.21 The contract will therefore require providers to deliver both Designated Units and Floating Support across the footprint, creating opportunities for people to move to different areas to break patterns of behaviour or negative relationships. In addition, the two Lots will work together in this respect, so if for example a person wishes to move from Scarborough to Skipton then the structure of the contract would not prohibit this and providers will work together to facilitate such a move.
4.22 Service Volumes
The current Mental Health and Substance Use service offer comprises 43 Designated Units and 81 Floating Support places across 7 geographic Lots as follows:
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Lot / Type |
Designated Units |
Floating Support |
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Craven |
3 |
6 |
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Hambleton |
6 |
12 |
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Harrogate |
16 |
25 |
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Richmondshire |
4 |
5 |
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Ryedale |
3 |
7 |
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Scarborough |
7 |
17 |
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Selby |
4 |
9 |
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Total |
43 |
81 |
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124 |
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Based on existing demand levels, coupled with the expanded scope of the service it is proposed that the scale of the service will increase significantly over the contract term. This increase will be managed in a staged way, reflecting the challenges of scaling a service and acquiring sufficient housing units in a challenging market.
The service will target a 50/50 split of designated units and floating support places, however given the challenges of securing housing units the contract will take a flexible, but robustly enforced approach to the balance between service types.
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Lot / Year |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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East |
88 |
113 |
125 |
150 |
150 |
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West |
88 |
113 |
125 |
150 |
150 |
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Total |
176 |
226 |
250 |
300 |
300 |
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Increase over current |
41% |
81% |
102% |
142% |
142% |
4.23 Pricing and Payment Model
4.23 The contract will pay a flat rate per unit, this rate will reflect a blended level of need between those with lower and higher levels of need as set out in the specification. Allocations will ensure that a suitable balance of people with high and low needs are maintained within the service at all times.
4.24 Supported Housing models always rely on providers utilising Housing Benefit to support housing related costs, as such NYC’s contract will only fund the Support Service. This is part of what makes Supported Housing services highly cost effective for local authorities as shown under the Benefits section of this report.
4.25 To support additional costs around move in, and incentivise move-on, providers will receive an up front element of the per unit cost at the start of a person’s stay as well as a ‘move on’ payment at end of a person’s stay in the service.
4.26 This approach aims to incentivise providers to ensure that robust and timely plans are made for move-on so that people do not remain in the service beyond the time allocated. It is recognised that there may be limited and specific instances where an overstay may be appropriate or beyond the control of the provider, these instances will be managed through contract management processes.
4.27 An inflationary clause will be included within the contract to reflect rises in a service where the vast majority of spend is on direct and indirect staffing costs.
4.28 Benefits
4.29 National Government research has consistently shown the benefits of Supported Housing on the wider health and care systems. A long term evaluation of the Supporting People Programme (the pre-cursor to these services) showed that for every £1 spent, £1.68 in benefit was accrued in cashable benefit across the system alongside non-cashable benefits for the individual.
4.30 These benefits are accrued through impacts on use of health services, social care, criminal justice, homelessness and housing services.
4.31 More recently and locally, the review of the REACH service which uses similar principles but with enhanced support for a specific cohort has shown benefits of between £1.40 and £3.32 for every £1 invested depending on the levels of complexity involved.
4.32 On this basis the overall evidence base for Supported Housing is strong, however there are North Yorkshire specifics which will also be addressed through the development of this service.
4.33 A key challenge facing NYC Housing is the continued use of Bed and Breakfast accommodation to support people experiencing homelessness but who also have a range of identified support needs that are higher than can be supported in current services.
4.34 In mid-2025, there were 112 people being supported in B&B accommodation across the County of whom 85% had some form of mental health need, 65% were actively using substances and 60% have an involvement with police or community safety. This group are a key target cohort for support through the new service.
4.35 On average, B&B accommodation costs the Council £80 per person per night giving an annual cost of £29,200 per person. This is for accommodation only, with no dedicated support as part of a package unlike supported housing.
4.36 By utilising housing benefit in appropriate and effective ways, supported housing is able to deliver highly cost effective services, well below the rates currently used in temporary accommodation, with the added benefit of the person receiving effective support to develop the skills and resilience they need to live independently.
4.37 Whilst in practical terms it may not be possible to support every member of this group within supported housing, the much lower unit cost of Supported Housing creates the opportunity for significant savings against current spend.
4.38 Whilst direct cashable savings will be significant, the impact of people receiving support which is not currently in place in B&B accommodation will also be beneficial to NYC as set out above. This will be seen in reduced demand on social care and homelessness services as well as reductions in rough sleeping and anti-social behaviour which are significant concerns for communities.
5.0 Alternative Options considered
a. Cease the service
Supported Housing is a non-statutory service and as such consideration was given to closing the provision at the end of the contract. This option was discounted on the basis of the continued good outcomes the service provides and the increased relevance of Supported Housing services in a unitary authority where the actions of one directorate (Adult Social Care) have very clear and direct positive impacts on another (Housing).
b. Reprocure on an as-is basis
This option would have put in place a continuation service which would have continued to provide good outcomes for people and control costs in other areas. However this approach would have ignored the opportunity created by the move to a Unitary Authority as well as that of additional funding from Second Homes Council Tax.
c. Procure an enhanced and expanded service (Preferred Option)
This is the approach set out in this paper.
6.0 Financial Implications
6.1 The service will be funded through income generated by Second Homes Council tax in accordance with the report ‘Second Homes Council Tax Housing Fund Framework’, approved by the Executive on 18th March 2025.
6.2 The anticipated lifetime spend is anticipated to be £13,100,000 over the full term of the contract, this is dependent on tender values and an annual inflationary uplift linked to CPI.
7.0 Legal Implications
7.1 The procurement shall be undertaken in accordance with the Procurement Act 2023 and the Council’s Procurement and Contract Procedure Rules.
8.0 Equality Implications
8.1 An Equality Impact Assessment Screening Tool has been completed as part of this proposal, the document is attached as Appendix A.
9.0 Climate Change Implications
9.1 A Climate Change Impact Assessment has been completed for this proposal, the document is attached as Appendix B.
10.0 Conclusions
10.1 The proposed LIFE Supported Housing Model marks a step change in the delivery of supported housing services in North Yorkshire. This approach moves the service from being a relatively small and low level offer to being a core part of the shared HAS and Community Development ambition to reduce homelessness and it’s effects across the county.
10.2 The changes and enhancements to the service model will allow people with a broader range of needs to be supported, and the commitment to integrated working across directorates, partners and providers will enable the service to maximise impact and benefits across service areas and localities.
10.3 LIFE should be seen as a key benefit from Local Government Reorganisation, in a landscape of 8 Councils with split responsibilities across Housing and Care, a model such as this would not be deliverable at a Countywide scale. Whilst projects such as REACH were possible in a limited way in single areas, the formation of North Yorkshire Council is the key enabler for projects such as this.
11.0 Reasons for recommendation
11.1 The proposed service will have a significant positive impact on people who access the service and the communities in which it is based. The service will also act as a meeting point for Social Care and Housing services, allowing teams to work together effectively around this provision.
11.2 The service maximises opportunities created by the formation of North Yorkshire Council and the income generated by Second Homes Council tax to create a solution which addresses a broad range of needs and challenges faced by both Directorates.
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12.0 Recommendation That approval be given to commence a procurement for a Supported Housing Service for People with Mental Health Needs – Living Independently for Everyone.
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Name and title of report author:
Mike Rudd – Head of Supported Housing
Appendix A: Equality Impact Assessment Screening Tool
Appendix B: Climate Change Impact Assessment