The Croydon children’s home contract to run Precious House in Sanderstead has been terminated less than six months after the home opened, after the council concluded it had lost confidence in the provider’s ability to keep vulnerable children safe.
Croydon Council has served notice on the seven-year deal, worth £8.57 million — around £1.2 million a year — under which the St Christopher’s Fellowship charity managed the council-owned home. The termination follows a report to the Town Hall which states that children were put “into situations that subsequently resulted in placement breakdowns and/or hospital admissions”.
Why the Croydon children’s home contract was cancelled
According to Inside Croydon, which obtained the council report, Precious House “has not had a permanent registered manager since registration and service commencement”. The home was registered with Ofsted in March this year and was intended to provide short- to medium-term residential support for vulnerable children in care, helping them eventually return to their families or secure long-term arrangements.
The report — titled “Contract Termination for the Provision of a Children’s Home” — states: “This report seeks approval to terminate the contract for the operation of Precious House children’s home. The recommendation is driven by concerns regarding the outcomes experienced by children placed at the home and the provider’s inability to consistently demonstrate the capability required to deliver the high standard of care expected by the council as Corporate Parent.”
It adds: “Concerns about the delivery of Precious House were identified soon after commencement of the service. Despite efforts to work with the provider to improve practice, the situation has deteriorated to the extent that reasonable steps to address the concerns are no longer considered viable or effective and confidence in the ability of the provider to deliver the service is lost.”
The report goes on: “A key factor resulting in these recommendations has been the outcomes experienced by children placed at Precious House. All children had moved from stable arrangements, where they had remained for several months, into situations that subsequently resulted in placement breakdowns and/or hospital admissions.”
Staffing problems at Precious House
Staffing was a central concern. The report says: “Recruitment and retention of staff have been of significant concern contributing both to delays in service delivery and to the deterioration of the emergency accommodation provision.”
It also records that “concerns have been raised with the provider at the highest level” and that “managers were unwilling to reverse decisions and work in partnership to find solutions”.
Precious House, previously known as Angel Lodge, is designed to provide beds for four Croydon children in care. According to the council report, dated 7 August but released on 17 September, there were two children in accommodation at the home at that time. Much of the detail of the council’s concerns has been kept from public view in “Part B” papers which have been withheld, Inside Croydon reports.
Mayor Perry’s flagship savings project
The home was the centrepiece of Mayor Jason Perry’s “Stabilisation Plan” to cut costs. In 2025 the council sought to provide residential care for children itself rather than pay what it described as the high charges made by private providers. The procurement contract was signed in July 2025 with St Christopher’s Fellowship after a tender process.
When the home was registered and ready to open in March, Perry said: “We are working to become a more cost-effective and efficient council. This new children’s home… will give our young people the best possible chances to thrive.”
The termination report was written by Stuart Collins, the successor to Debbie Jones, the council’s previous director of children’s services, who had originated the scheme. Jones had said the home would “give the council a blueprint for future initiatives” to reduce the financial burden of external residential placements. The cabinet member responsible for the report is given as Councillor Andy Stranack; the Mayor’s name does not appear on it, Inside Croydon notes.
The property was brought up to required safety standards with a capital grant from the Department for Education. The contract includes a three-month notice period.
Questions over transparency
The council report of 7 August was only released on 17 September, and, according to Inside Croydon, the matter has not been discussed at any public council meeting. Opposition councillors are said not to have received any official briefing on the seriousness of the situation.
The report does not record a response from St Christopher’s Fellowship to the council’s criticisms.
What happens to the two children currently accommodated at Precious House, and who will run the home during the three-month notice period, remain unclear — as does the fate of the council’s plan to use the home as a blueprint for cheaper in-house provision. This is a developing story.
Reporting based on Inside Croydon.
