Croydon Council won’t renew its meals on wheels service at the end of this month.
The authority has blamed the cut on fewer people using the service.
From April 30, locals will no longer be able to order subsidised meals through the service contracted out to Apetito.
The decision means 22 people hired by the company will lose their jobs.
The council reappointed Apetito in 2016 for a six-year contract worth £3,474,200 according to Procontract, the council tendering and contract system.
According to the contract details here, it has an annual value of £706,616 and was due to end on April 30 this year.
Opposition councillor, Yvette Hopley, health and social care, said the cut will affect the most vulnerable in the borough – 206 people are understood to use the service.
She said: “I am extremely worried because this is the most vulnerable cohort of residents that we’ve got.
"It is always the poorest most vulnerable that seem to be suffered as a result of the cuts caused by the council’s bankruptcy.
"Voluntary organisations will be expected to support these residents.”
Cllr Hopley said locals who use the service were sent a letter it would be scrapped a few weeks ago.
She added: “Residents have said the alternative providers will be 20 per cent dearer and there is only one that provides hot meals.
"This means many will have to heat things up which is an additional cost.”
And the councillor said the service also helps with social isolation.
She said: “Sometimes it is the only person somebody sees, they might not necessarily be in receipt of a care package and it is the only person they speech to each day.”
In a statement on its website, Croydon Council said: “After much consideration, the council has decided to not renew the contract with Apetito for the Meals on Wheels service.
"We have written to all our residents who currently receive Meals on Wheels from Apetito.
“The numbers of people using this service have steadily fallen over recent years and the council must consider which services it can continue to subsidise.
"You will still be able to order and receive meals from Apetito up to and including Saturday 30 April 2022.”
It provides a document of alternative providers of food delivery which includes a list of supermarkets, including Aldi, sometimes available on Deliveroo and Amazon food.
But Labour councillor and member for families, health and social care, Janet Campbell claimed that for the past year the council has just paid VAT on the meals.
She claims it was a five year contract and the council continued to pay the VAT on meals for the past year.
She said of the 206 who are affected by the withdrawal of the contract, 140 are referred by the council of whom 73 receive funding from the council.
Cllr Campbell said: “We are looking at another provider for a similar service unrelated to the local authority. Our commissioning team have continues to ring ro make sure each and every 140 residents have a solution to this.”
A spokesperson for Apetito said it was told the contract would come to an end in February and will be redeploying six of its 28 members of staff to other teams in the business.
They said: “It is with enormous regret that following the Croydon Council’s decision to cease its meals on wheels contract with us and despite exhausting all available options, our hot meals service will be coming to an end at the end of this month.
"Our thoughts are all with those employees and customers who have been impacted as a result of the Council’s decision.”
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