In its response to the Children, Schools and Families Committee's report on the Children and Young Persons Bill, the government emphasised the importance of local authorities maintaining close relationships with private providers.

Responding to concerns about the closure of private care firms such as Sedgemoor, which went into administration last autumn, the government added: "In such circumstances there is a clear statutory framework for placement moves that local authorities must follow to fulfil their responsibilities for safeguarding and promoting the welfare of children in their care."

The government also responded to MPs' fears that academy schools might not follow a voluntary requirement to have a designated teacher for looked-after children.

While it said it supported "light touch" regulation of academies and believed they would adopt best practice, it said: "Due to the importance we attach to improving the education of looked-after children we will specify in the funding agreement of future academies that they must have a designated teacher for looked-after children."

The government argued the current voluntary notification system for fostering "should offer an appropriate level of protection to privately fostered children", but said it was working on raising awareness and providing better information.

It also said that it shared the committee's concerns about independent reviewing officers (IROs), who are supposed to identify problems in children's care. It said it would be monitoring the impact of reforms on the IRO scheme through Ofsted inspections, a ministerial stocktake on children in care and an independent evaluation of the IRO service in 2011.

The government also revealed it is in the process of assessing bids from councils to pilot post-18 fostering arrangements. It said the Staying Put: 18+ Family Placement pilots will give young people "the opportunity to remain with their former carers into legal adulthood".

- www.cypnow.co.uk/doc.