North East regional procurement framework for residential care collapses

The NE12 education, health, and care (EHC) framework was set up by procurement solutions organisation NEPO in 2016, to increase regional access to placements in residential children’s homes, special schools and colleges and short breaks services. It is led by Newcastle City Council.

However, the framework agreement is due to fold at the end of the next financial year, Newcastle has confirmed.

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A spokeswoman for the council said: “Newcastle has led the EHC framework on behalf of NEPO for several years with seven North East local authorities including Newcastle participating.

“The residential care market is very complex and the framework does not fully meet the needs of the local authorities. Due to this a decision was taken through NEPO in May to extend the current EHC framework to the end of the financial year, and not to commission a direct replacement. Local Authorities in the region have good relationships with providers who they will continue to work with post March 24.”

Experts have said the collapse of the framework calls into question government plans to pilot regional commissioning co-operatives (RCCS) for residential and foster care placements from April next year in response to the Independent Review of Children’s Social Care.

Local government legal specialist Leonie Cowen said: “Newcastle withdrawing from the residential framework will result in separate procurement exercises and much more work for commissioners and providers.

“There is a risk that providers will not bother to participate or will do so selectively: and that is only the beginning of the practical and operational impact which will continue into the future with a proliferation of different approaches, procurement documents and competition for scarce places, all at a time when government strategy is to exhort or even require local authorities to work together in RCCs.”

Jonathan Stanley, director of the National Centre for Excellence in Residential Child Care, added that the collapse “shows the need for a complete rethink of the Care Review regarding the residential sector”.

Andrew Rome, director of Revolution Consulting, who has undertaken analysis of the children's social care market, said that lessons must be learned from the closure.

“It would be worth the Department for Education carrying out a forensic evaluation of the experience of NEPO. The insight gained would be of great value to RCCS,” he added.

Newcastle also leads on procurement contracts for foster care and advocacy services for children through NEPO which will continue across 12 local authorities.

The Newcastle Council spokeswoman added: “The North East continues to benefit from a range of positive shared arrangements with all 12 local authorities participating in a regional fostering framework led by Newcastle as well as shared arrangements covering independent visitors, advocacy and the recently announced fostering pathfinder.”

NEPO has been contacted for comment.