County council approves takeover of Henshaws disability home support service in Harrogate

North Yorkshire County Council's executive met today to bring Henshaws Home Support in-house after the charity warned its finances were on a "knife edge" and gave notice on a contract with the authority.

Coun Michael Harrison, executive member for health and adult services, said it is unusual for councils to in-source these types of services, but added there is a "real risk" to its future if it was handed over to another private provider.

"We are not suggesting the existing provider is failing," he said.

"What we are saying is we need to make sure this is able to be continued for the people who receive it."

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The service to be brought under council control by October has 10 properties in Harrogate with a capacity for 26 people.

Henshaws, which is headquartered in Manchester, also runs a specialist college in Harrogate and an arts and crafts centre in Knaresborough.

These will not be affected by the takeover, although the arts and crafts centre is to remain closed "for the foreseeable future" because of financial problems caused by the Covid-19 pandemic.

Barry Khan, the council's assistant chief executive for legal and democratic services, told councillors Henshaws had raised concerns about the impact of the takeover on its reputation.

He said the charity wanted to clarify its financial position and explain why it gave notice on its contract.

"They have never stated that they have been in financial difficulties," Mr Khan said.

"They have stated this particular contract wasn't financially viable and the rest of the charity was in effect subsiding this contract."

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A council report said it first became aware of the charity's financial position in November last year.

It added there were also "quality concerns" over the amount of agency staff being used by Henshaws.

Coun Harrison said the council will aim to keep permanent staff in their jobs and launch a recruitment drive as it looks to move away from the use of agency workers.

Fifteen service users are currently funded by the county council and the rest by other local authorities. The service also provides community support to 10 people.

The county council said it had written to affected families about the changes.

By Jacob Webster, Local Democracy Reporter