Mental Health Step-down service

Market Context

The Mental Health Step‑Down (MHSD) service is a key component of the mental health pathway, supporting the reduction of individuals who are Clinically Ready for Discharge (CRFD).

This accommodation‑based service provides flexible, recovery‑focused and trauma informed support to help individuals regain stability and develop the skills and confidence needed to live independently in the community.

It is designed for adults aged 18+ who experience multiple disadvantages and exclusions, placing them at risk of or experiencing homelessness.

The service operates in Wells and Yeovil, with four beds available at each site, and delivers trauma‑informed support from 9am to 5pm, seven days a week. It supports:

• Individuals whose primary need relates to mental health.
• People assessed as clinically ready for discharge from psychiatric wards.
• Those requiring suitable housing and support with their recovery.
• Individuals who need an extended period of recovery before returning home, or assistance to maintain independence.

Market Rating

Market Quality: Good
Market Supply: Stable

Current market status

Somerset Council has confirmed continued investment in this intermediate mental health pathway from April 2026 and has approved a Direct Award of the Mental Health Step Down service under the Provider Selection Regime (PSR).

The new contract will commence on 1 April for two years, with an optional one‑year extension.

Market Data

All data is as at 31/03/2026

Distance from desired commissioning objectives

The service is performing well, operating close to full capacity and achieving a positive move‑on rate despite pressures within the local housing market.

The updated service specification strengthens expectations around creativity, effective collaboration, and multi‑agency working to maximise utilisation and outcomes for individuals.

Market Risks

• Ongoing challenges with staff recruitment and retention.

Commissioning Focus Areas

Commissioners will continue to actively manage the contract to ensure the service operates to its full potential. This includes close engagement with system partners and individuals with lived experience to support effective performance monitoring and service development.

Lived Experience insight

‘I’ve learned new skills including building confidence to ask for help.’