Action for Children Wins £15.2m Contract to Operate New Hackney Children’s Homes

The London Borough of Hackney has selected Action for Children to deliver and operate two new children’s homes within the borough under a contract valued at £15.16 million.

The procurement, titled 2.0 Commissioning Children’s Homes in Hackney for Children Looked After, will see the charity run two council-owned residential properties designed to provide care for children and young people aged between 11 and 17.

Together, the homes will accommodate up to six children, with provision split across a two-bed and a four-bed property. The initiative forms part of Hackney’s plans to expand local residential care capacity for children looked after by the authority.

Action for Children was awarded the contract following an open procedure conducted under the Light Touch Regime. Three tenders were received, with two progressing to the final assessment stage.

The contract has an estimated value of £15,162,083 excluding VAT (£18,194,499 including VAT) and is expected to commence on 18 June 2026, running until 17 June 2031. The council has included provisions for two one-year extensions, which could extend the arrangement through to June 2033.

Action for Children, headquartered in Watford, was named the successful bidder. St Christopher’s Fellowship was identified as the unsuccessful finalist in the competition.

Contract Award Summary

Contracting Authority: London Borough of Hackney

Successful Supplier: Action for Children

Contract Title: 2.0 Commissioning Children’s Homes in Hackney for Children Looked After

Contract Value: £15,162,083 excluding VAT (£18,194,499 including VAT)

Contract Duration: 18 June 2026 – 17 June 2031

Extension Options: Two one-year extensions available, potentially extending the contract to 17 June 2033

Location: Hackney and Newham

Procurement Procedure: Open Procedure (Light Touch Regime)

Tenders Received: 3

Final Stage Bidders: 2

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