The Government has released its green paper, Care Matters, on improving outcomes for looked-after children in England. But concerns about sufficient funding for the much-applauded plans could jeopardise their implementation, reports David Singleton.

Ministers have spent the past few months dropping a steady series ofhints about their plans for transforming the lives of the 60,000children in the care system. Last week, education secretary Alan Johnsonfinally unveiled the Government's masterplan in the form of the CareMatters green paper.

"The proposals in this green paper build on what we have achieved andwhat we have learned," he announced. "Systems will be strengthened,accountability improved, support better structured - in and out ofschool. We have a chance to really address some serious issues at thevery core of education and social exclusion."

Care Matters is the second attempt by the Blair Government to tacklethis difficult issue - coming three years after the Social ExclusionUnit published its report on improving education for children incare.

Since then, outcomes have improved in some respects. But there remains asignificant and widening gap between outcomes for looked-after childrenand outcomes for other children. Shockingly, only 11 per cent ofchildren in care attained five good GCSEs last year, compared with 56per cent of all children.

The long-term outcomes for looked-after children are alsodevastating.

These children are over-represented in a range of vulnerable groups,including those not in education, teenage parents, young offenders, drugusers and prisoners.

Money matters

In the foreword to Care Matters, Johnson says this state of affairs is"neither acceptable nor inevitable" and the subsequent 115 pages of thedocument are brimming with proposals to reverse the trend. Thechildren's sector has welcomed most of these proposals but stressed thatthe Government's final package will need to be backed by sustainablefunding.

So what is on the table? The Government will look at giving socialworkers a ringfenced budget to spend on individual children in theircare. Social workers could spend the money on whatever they see fit:football boots; train tickets; or therapy. A number of local authoritieswill now carry out pilots to explore the level of budget that could beheld by social workers.

There are also plans to improve the status of foster carers throughsalaries, registration and training. The Government will consult on athree-tiered model of placement types that reflect the various levels ofneed among different children in care. The model would be underpinned bya new framework of skills and qualifications.

The document states that this new arrangement would offer "a ladder ofcareer progression for carers", although it does not make it clear atwhich level carers would be paid. At the press conference last week,Department for Education and Skills officials revealed that onlytier-three foster carers providing specialist care were likely toqualify for a salary.

There are also a plethora of new proposals focused on improving theeducation of children in care. The Education and Inspections Billalready contains provisions to give local authorities the power todirect schools to admit looked-after children, even when the school isfully subscribed. And the Government will introduce a free entitlementto school transport so that children can stay at the same school after aplacement move.

Exclusions from school are a major issue for children in care, with 0.9per cent of this group excluded last year, compared with 0.1 per cent ofall children.

The Government will "strengthen existing guidance on school exclusionsto encourage schools not to exclude children in care other than in themost exceptional circumstances".

To ensure that the education system delivers for children in care, theGovernment is proposing a "virtual head teacher" in every localauthority. This would be a senior individual working for the localauthority and tasked with driving up standards in the education ofchildren in care. The Government will pilot this initiative in a numberof trailblazer authorities, with a view to rolling it out acrossEngland.

But some of the most significant proposals in the document are focusedon the transition to adult life. Some 28 per cent of children in careleave the system aged only 16 and it is usually not their choice. Thedocument acknowledges the mounting evidence that these children arebeing forced out against their will and comes up with a promisingsolution. Care Matters proposes to pilot the idea of giving young peoplea veto over any decisions about legally leaving care before they turn18.

The Government is also proposing to pilot allowing care leavers to livewith foster families up to the age of 21 and to evaluate the supportrequired and the impact on their longer-term outcomes.

Robert Tapsfield, chief executive of the Fostering Network, isimpressed.

"The plans outlined in the green paper could make a real difference inthe lives of children in care," he says.

"In particular, allowing teenagers to stay with their foster carersuntil the age of 21 would offer massive benefits for many young peoplewho are currently forced out before they are ready."

Children's minister Beverley Hughes and her colleagues at the DfESmasterminded most of the proposals. But one controversial plan was addedin at the last minute by Tony Blair's advisers at 10 Downing Street.

The document states: "We propose to explore a model of 'social carepractices': small groups of social workers undertaking work withchildren in care commissioned by, but independent of, local authorities.A practice would be an autonomous organisation, whether a voluntary orcommunity sector organisation, a social enterprise or a private business- similar to a GP practice."

The Prime Minister believes that there can be an inherent tension forsocial workers operating in local authorities. On the one hand they mustdo what is best for children, but on the other they must defend theauthority's existing policies. He is also concerned that the variouslevels of management in authorities can mean that decisions aboutchildren are taken by people with no direct knowledge of that child'sneeds.

So the big idea is that responsibility is passed over to privateagencies employing about 20 social workers.

Alastair Pettigrew, director of children's social care at LewishamCouncil, is one of the drivers behind the plan. He tells Children Nowthat it could put a stop to the rapid turnover of staff in the socialcare profession.

"Looked-after children need and want someone to confide in and it isdisrespectful to them that we create organisations that result in thosepeople continually changing," he says.

"It seems to me we have to learn from the example of GP practices wherepeople remain in place throughout. Why? Because they are incentivised toremain in place. They have investment in the premises and investment inrepeat business."

Outsourcing with care

But many children's services directors are far from convinced. DavidHawker, children's services director at Brighton & Hove City Council,says: "I am not against exploring alternative modes of provision. Butthere are certain areas of service that are so fundamental to the roleof the local authority as corporate parent that you do need to be verycareful about what you are outsourcing."

He says there is no evidence that social care practices would lead tobetter long-term stability. But most crucially, he says, the newpractices would probably be far more expensive than most currentarrangements.

"It's not necessarily more cost-effective. So unless there is more moneyin the system to contract in this sort of way, then it is likely that itwill cost us more and therefore take resources from elsewhere," hesays.

"And the biggest danger is that it will take resources from the verysocial work functions that are core to our role, such as childprotection work."

Those who do have reservations will have time to make them known. Aworking group is being set up to explore the idea and its conclusionsare not expected until next year. Children Now understands that thegroup is currently searching for a director of children's services whois sceptical about the plan. It is unlikely that there will be ashortage of applicants.

KEY PROPOSALS

THE ROLE OF CORPORATE PARENTS

- A working group will explore the feasibility of new, independent"social care practices" to provide services to children in care

- The Government will conduct a pilot that gives social workers aringfenced budget allocated to a particular child in care

CARE PLACEMENTS

- The Government is proposing developing a "tiered" model of placementtypes, depending on the needs of the child. This could be underpinned bya formal qualifications framework for foster and residential carers

EDUCATION

- The Education Bill will give local authorities the power to directschools to admit children in care

- The Government is proposing free school transport for children in carefollowing a placement move

- It is also proposing to pilot a "virtual head teacher" in a number ofauthorities. This is a senior professional who would monitor theprogress of looked-after children

LEAVING CARE

- The Government is proposing to pilot giving young people a veto on anydecisions about legally leaving care before they turn 18. It is alsoproposing to pilot allowing care leavers to live with foster families upto the age of 21

- The Government will top up the child trust funds of young people incare and is proposing a bursary of 2,000 towards universitycosts

INSPECTIONS

- The Government will ask Ofsted to inspect how every local authority isperforming in relation to the education of children in care

WHAT NEXT?

- The Government is consulting on the green paper until 15 January2007

- Children in care, care leavers and professionals are all invited torespond

- Care Matters is available at www.dfes.gov.uk/publications/carematters/index.shtml.