Shaw Trust is ending a contract with Somerset council and Somerset NHS Foundation Trust five years into what was supposed to be a 10-year arrangement, it has confirmed.
The charity is set to walk away from its Homes and Horizons partnership with the council and trust, through which its trading subsidiary Homes2Inspire ran several children’s homes, in November 2027.
The cost-based contract had a maximum value of £70m over 10 years. Since the contract began in 2022, it had been worth a total of approximately £15m, the charity confirmed.
Operational problems were highlighted earlier this year by a critical Ofsted report on one of the children’s homes managed under the partnership.
Eight homes were operated by Homes2Inspire under the partnership arrangement but five of these have now closed.
The three remaining homes are continuing to operate and be delivered by the Shaw Trust subsidiary, with Somerset council confirming that funding had been secured for a further three homes to join the partnership in the future.
It was initially envisaged the Homes and Horizons partnership would provide eight to 10 new local homes “designed for children with the most complex needs that the external placements market is unable to support”.
However, it is understood that the operational problems faced by the homes affected the quality of standard of service provision offered.
Homes2Inspire otherwise runs over 50 homes across eight local authority areas.
‘Carefully managed transition’
Chris Luck, chief executive of Shaw Trust, said: “While we have seen positive outcomes for many young people, we accept that we are not able to deliver the outcomes we want for the partnership and the county.”
Luck added that he accepted that “needs of young people come first as we transition the homes to new partners”, and emphasised that the charity will be focusing on continuing to deliver “high-quality” care in its remaining homes.
He said the charity would work closely with Somerset council to deliver a “carefully managed” transition by late 2027.
A spokesperson from Somerset council said: “For the small number of children affected by these changes, they will receive safe, stable, and high-quality care. Children and young people will be supported through carefully planned moves to new homes where required.
“This was an innovative scheme. We believe it’s the right model but that it needs refining as we progress and learn. It is expected that the transition to a revised residential model will take place by late 2027.”
The spokesperson additionally stressed that the decision was “not about finances”, with the current closures of some of the homes being temporary “to allow a focus on development of the future model.”
None of the homes will be sold, and does not feature in any asset disposal plans at the council, they said.
