Decision details

The MHSS and Individual Placement and Support IPS services require this implicit modification to ensure they remain deliverable, financially sustainable, and aligned with national guidance. The modification formalises essential updates to funding, specifications, staffing, and performance expectations.

The Mental Health Support Services (MHSS) contract and the IPS employment service form part of East Sussex’s wider mental health transformation. The services are jointly funded and aligned with national guidance, NHS Sussex (ICB), Council planning, and the development of Neighbourhood Mental Health Teams (NMHTs).

Approval of the contract modification relating to the Mental Health Support Services (MHSS).

Changes since 2024 have created the need for an implicit contract modification under the Public Contracts Regulations 2015. The changes are predominantly financial and operational in nature and do not alter the overall nature of the contract.

The Modification Areas are as follows
- Individual Placement Support Funding Schedule Revised for 2026–27 and 2027–28
- Adoption of a New Sussex Wide Individual Placement and Support Specification
- Amendments to Staffing Levels and Key Performance Indicators (KPIs)
- Service Redesign & Revised MHSS Budget Schedule

1. Increase and adjustments to IPS funding
If the IPS funding is not adjusted, the service would be unable to uplift staff pay, leaving it highly vulnerable to significant staff turnover, ongoing recruitment difficulties, and potential reductions in service capacity. This would place the stability of the service at risk and ultimately impact the service users who rely on consistent support. As the additional funding is available from NHS England, there is no financial risk to the Council in accepting it. Failure to do so would directly jeopardise the sustainability of the IPS service.

2. Adoption of a Sussex-wide IPS specification
Implementing the new specification formalises the updated delivery model, aligns the service with national IPS expansion expectations, and secures access to NHS England funding. Choosing not to adopt the revised specification would block East Sussex from accessing this funding, leaving the service exposed to instability, reduced resilience, and a greater likelihood of staff losses and service disruption—ultimately affecting service users who depend on IPS support.

3. Amendments to staffing levels and KPIs across the wider Mental Health Support Services (MHSS)
Due to a lack of inflationary uplift to MHSS funding and unavoidable increases in staffing costs (NI, pay increments, and living wage requirements), adjustments are required to maintain overall service sustainability. Not making these changes would create a situation where maintaining current staffing and performance levels becomes unviable, increasing the risk of gaps in provision caused by staff turnover, recruitment issues, or sudden reductions in service capacity. This would have a direct and detrimental impact on service users who rely on consistent support

4. Revised MHSS budget schedule
The revised budget redistributes available resources, reflecting necessary reductions in capacity in some areas and increased investment in IPS. Without redistributing funding, MHSS would be unable to align services with Neighbourhood Mental Health Teams (NMHT), nor protect essential service functions. This would leave key areas vulnerable to further staffing challenges and possible service closures, creating substantial disruption for the service user population who rely on these supports.