Minister rebukes councils for neglecting voluntary sector

Morgan was responding to opposition party concerns that charities are at the mercy of short-term contracts, during a pre-election debate on Wednesday on looked-after children.

Shadow children's minister Tim Loughton said: "The voluntary sector is used too often as the cheap option. We want to see a level playing field with the public sector."

Morgan said: "We don't want local authorities to be funding voluntary organisations on a hand-to-mouth basis [but] we think this is happening in local authorities across the country."

She said the Department for Children, Schools and Families has invested in programmes to get councils to commission services more effectively. Morgan also cited the importance of the voluntary sector Compact, which sets out principles and guidelines for work between government and the third sector. But Loughton retorted that its principles were not working in practice.

Morgan also claimed the "government's record for funding looked-after children's services has been very good". She said funding increased from £1.3bn in 2000/01 to £2.2bn in 2007/08.

Kevin Williams, chief executive of the Adolescent and Children's Trust (Tact) said outcomes for children in care had not kept pace with the growth in investment.

But Morgan said: "We need to be very careful because if we talk down the outcomes from investment it will be hard to make the case later on. This year, for the first time that records have been kept, the educational attainment gap between looked-after children and the rest of their peers has not grown."

On the subject of accommodation for care leavers, Liberal Democrat spokeswoman for children and young people Annette Brooke said it was imperative that housing departments were involved in children's trusts. "I really hope the next government, come what may, will bring housing properly into the loop locally."

Loughton revealed the Tories would soon produce a "comprehensive report" on the party's plans for adoption services.

The debate, ‘Children in Care: What issues should the new Government be focusing on?' was hosted by the British Association of Adoption and Fostering, Tact, The Who Cares? Trust, the Fostering Network and looked-after children's advocacy charity Voice.