Herts County Council to renew NHS contract supporting mental health services
Herts County Council plans to renew its seven-year contract with Hertfordshire Partnership University NHS Foundation Trust to provide mental health and learning disability services across the county.
The new contract would take effect from April 2026, and would replace the existing Section 75 agreement between the council and the trust, as they pool elements of their health and social care budgets.
This contract would follow the new process of Health Care Services (Provider Selection Regime) Regulations 2023, which sets out the current processes available for public sector health care commissioning.
The matter was considered by the council’s adult care, health and wellbeing panel on Thursday, February 27.
A report prepared by senior commissioning manager James Salmon, and head of integrated care commissioning Robin Goold, stated: “Hertfordshire has a long history of integrated health and social care mental health services, and this integration supports joint working across the system in line with UK Government and NHSE strategic direction, and for people experiencing mental ill health to receive an integrated service from one organisation.
“HPFT and the County Council are partner organisations and signatories to a Section 75 agreement including the delegation of some statutory social care functions from the County Council to HPFT.”
During the meeting, Councillor Sally Symington said: “I think we’re very supportive of the way you’re going forward and it’s clear from the report why this direct award is appropriate.
“What was the previous value of the contract and if it’s materially different, what’s different in terms of what’s been scoped into it?”
Mr Goold responded: “The contract value at the beginning of the contract, the combined health and care value was around £185 million and then it has gone up to £260 million.
“That is due to three or four significant factors. Firstly, annual settlements for the NHS have been generally higher than local authorities, which I’m sure you’re all aware of. There has been significant investment in service development funding for the long-term plan.”
Mr Goold explained that mental health provision typically had higher inflation rates, and that additional funding had come during Covid to support recovery after the pandemic.
Councillors unanimously approved the proposed contract.