DfE launches new advisory group on children’s social care ‘profiteering’

Steve Crocker, who was also president of the Association of Directors of Children’s Service for 2021/22, will lead the Market Interventions Advisory Group, it has been revealed.

In his inaugural speech as president for 2024/25, Andy Smith, director of children and adult services at Derby City Council, said: “We have high hopes for the recently announced Market Interventions Advisory Group and stand ready to work with Steve and the government to ensure the money in the system is directed towards meeting the needs of children and young people, rather than lining the pockets of executives and investors.”

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He used his speech to highlight “excessive profiteering” from children’s residential care and foster care providers owned by private equity companies and social work agencies offering so-call managed teams of social workers to local authorities at a high cost.

A report published last year by the Local Government Association found that the largest independent providers of children’s social care saw profits of more than £300mn in 2022.

Meanwhile, an investigation by CYP Now found that between 2017 and 2022, councils collectively spent £41.1mn on managed teams from social work agencies.

Also, speaking at Smith’s presidential reception, Justin Russell, director general for families at the Department for Education, said the creation of the group signals that the department is putting a “new focus” on “unacceptable profiteering in the residential care market”.

He told attendees: “The market isn’t functioning well and it needs looking at.”

He added that the group was due to meet in the days following the reception on 16 April and would “develop some proposals hopefully around that on which we can consult later in the year”.

DfE has yet to confirm full membership, scope and terms of reference for the advisory group.