Groups providing services under the city's Neighbourhood Networks scheme in Leeds have won national praise for the quality of support and activities they provide for pensioners.

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But the council recently carried out a tendering exercise offering organisations the security of five-year contracts to provide services – and some existing providers learned they had missed out, sparking fears for their future.

Now, in the face of concern from councillors, the contract decisions taken by senior council officers are to be withdrawn and reviewed.

A council spokeswoman said: "A number of concerns have been raised in relation to the commissioning process undertaken to secure a high-quality of Neighbourhood Network service across the city.

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"The concerns are such that the director of Adult Social Services has decided to withdraw the delegated decision. This is so that we can undertake a fuller and more independent review of the process and evaluation of the bids submitted.

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"Existing contracts with those organisations currently operating as Neighbourhood Networks have been extended and therefore continuity of
service will not be affected."

Among the organisations that faced losing money was Swarcliffe Good Neighbours. Coun Suzi Armitage (Lab, Cross Gates and Whinmoor) said: "The whole tendering process has been a shambles.

"Swarcliffe Good Neighbours were so worried about the huge, jargon-filled tendering document that they had to spend some of their limited funds on getting professional assistance to complete it. How can that be right?

"Neighbourhood networks should be a source of real pride for this city.

Coun Lucinda Yeadon (Lab, Kirkstall) said: "It is an incredibly important issue and it is essential we make sure the decision taken by the council is the right one for people who use the services."