Kensington & Chelsea Awards £12.2m Mental Health Recovery Services Contracts

The Royal Borough of Kensington & Chelsea has awarded two contracts worth a combined £12.19 million for high-support mental health accommodation services across the North and South clusters of the borough.

The services will support a minimum of 62 adults with severe and enduring mental health needs, including people with complex co-morbidities such as substance misuse, forensic history and challenging behaviours. The provision includes 24/7 staffed accommodation in psychologically informed and trauma-informed environments, with a focus on recovery, independence and move-on.

Onecare UK Ltd has been awarded the North Cluster contract, valued at £5,649,192 excluding VAT. The cluster comprises three buildings providing a total of 29 bed spaces: Holly Villa, Cedar House and Linden House.

Turning Point (Services) Limited has been awarded the South Cluster contract, valued at £6,545,000 excluding VAT. Richardson House provides 11 bed spaces, with the service requiring arrangements for a minimum of 22 additional units within the South Cluster area.

Both contracts are expected to run from 1 October 2026 until 30 September 2031, with the Authority retaining the option to extend for up to a further 24 months. Any extension will be subject to satisfactory contractor performance, ongoing service requirements and the Authority’s approval.

The Royal Borough of Kensington & Chelsea made the award decisions on 10 August 2026, with 7 September 2026 listed as the earliest date the contracts will be signed.

The contracts were awarded following an Open Procedure under the Light Touch regime. Three tenders were received for the North Cluster, with two assessed at the final stage, while one tender was received and assessed for the South Cluster.

The two contracts have a combined stated value of £12,194,192 excluding VAT and £14,633,030 including VAT. The North Cluster is classified under Social Work Services Without Accommodation (CPV 85312000), while the South Cluster is classified under Social Work Services With Accommodation (CPV 85311000).

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