The growth in the number of looked-after children since 2015 has put increased pressure on local authorities to find sufficient care placements. Yet, evidence is emerging that this growth is not translating into more children being placed in independent residential settings, raising concerns among experts that the care sector is operating inefficiently.
Between 2015 and 2019, there was a 12 per cent rise in children in care, with latest Department for Education data published last December showing the number topped 80,000 by March 2020. Over the same period, children placed in residential care also rose by 12 per cent. However, the overall proportion of looked-after children in residential settings has remained the same at around eight per cent.
The latest DfE data showed little change in the overall picture in the 12 months to March 2020, but a survey of children’s homes providers shows that in the year to January 2020, there had been a fall in occupancy levels in homes. The survey of members of the Independent Children’s Homes Association (ICHA) gathers providers’ views on the reasons for this fall at a time when demand is rising.
The ICHA’s State of the Sector report, compiled by Andrew Rome, director of Revolution Consulting, shows two thirds of all respondents reported a rise in referrals, with four in 10 reporting an increase of more than 10 per cent. However, only 40 per cent of providers said this increase in referrals had translated into higher occupancy rates. The proportion of providers reporting that occupancy levels were above 85 per cent also fell substantially. This was even lower for smaller providers – homes that provide fewer than 10 beds – with only 30 per cent reporting a rise in occupancy rates.
“This continuing imbalance between referral rates and occupancy rates is a key indicator that the marketplace is not functioning at optimum efficiency or effectiveness, and there is little sign of improvement in the situation compared to a year earlier,” the report states.
Placement mismatch
The ICHA says a factor in so many referrals not resulting in a placement is that it is becoming harder to match the requirements of the child being referred with the placements available. This includes the ability of the provider to meet the child’s needs and how these can be accommodated alongside the needs of other children in the home.
“The needs of children being referred are becoming far more complex and provider’s abilities to safely match them with children already in their care, is becoming harder,” the ICHA states.
The age of children being referred is also a key factor. Providers reported both referrals that are for young people aged 16-18 who are too old for services specifically registered for younger children, and conversely, increased numbers of young children being referred to homes that have age ranges in the statement of purpose that automatically renders the referral outside of the scope of the home.
The significant challenge this poses is seen in providers reporting “multiple re-referrals of children due to earlier failures to find a placement or rapid breakdown of a poorly matched placement leading to repeat referral in short space of time”.
“The message that runs through the report is that the places that are required to meet need are not available,” says Jonathan Stanley, chief executive of the National Association of Excellence in Residential Child Care.
Affordability
The report finds that profit levels among respondents had fallen slightly over the year, but Stanley says it also makes clear that falling occupancy levels could be due to a rise in fees being charged for places.
The survey shows the average minimum and maximum price providers charged councils for placements rose by six and two per cent respectively (see graphics), however this masks a “very broad range of pricing” from £1,000 per week up to £7,000 per week. This, the report states, is mainly linked to the “broad range of needs and services in a complex sector” and not fluctuations in “market prices”.
However, this runs contrary to evidence presented in the recent Safeguarding Pressures 7 interim report, published by the Association of Directors of Children’s Services last autumn. In it, children’s services leaders report an “absolutely saturated” market where “private placement providers fees have become so exorbitant” they are “making a profit on the back of vulnerable children”.
The ADCS report cites numerous examples of councils across England paying upwards of £500,000 a year for some placements. This is mirrored in a recent report on private provision in children’s social care by the Office of the Children’s Commissioner for England, which cites council commissioners saying “private homes will charge what the market will allow” giving examples of fees being raised by a third “because it’s Friday afternoon and there are no other options”.
Despite this, the ICHA report found there had been a fall in the proportion of operators reporting increases in profits, with most saying it was stable.
Staffing issues
Staffing shortages in children’s residential care has been an issue for many years, but the ICHA report says there is emerging evidence that this is now having an effect on placements.
Almost half of providers reported staff turnover levels above 20 per cent, and only one in five providers report turnover below 10 per cent. These findings are consistent with those highlighted by Ofsted in its recent annual report.
“This data would indicate the need for further scrutiny and potential policy development in this area,” the report states. “Difficulties [in recruitment and retention] are directly related to uncertainty of further investment and expansion.”
The status and often negative portrayal of the sector by some media is one reason given by respondents as a contributor to the challenges faced.
Semi-independent provision
The combination of a shortage of suitable placements and cost pressures has also resulted in councils looking for alternative solutions. This has seen the expansion in the use of semi-independent accommodation, which latest DfE data shows has risen from 1,200 to 2,700 placements since 2015.
Semi-independent accommodation is not governed by residential care regulations so is generally cheaper, however there has been criticism about the suitability of these settings for some children, particularly those aged under 16.
Several providers that responded to the ICHA survey raised concerns about the use of unregulated services and called on the government to provide greater clarity about the regulation and use of those services as part of the recently launched Care Review.
“The profile of unregulated supported accommodation provision has been raised in the last year,” says Rome. “Children’s homes providers give a strong indication in this survey that they would consider investment into this type of service only if it becomes more regulated.”
Another option councils are starting to explore is investing in their own provision, and in so doing, reducing reliance on the independent sector.
“We heard how as a solution to a lack of affordable residential placements of the right quality, some authorities are developing council-owned children’s home provision,” the ADCS states.
The sector will be hoping the Care Review offers a long-term strategy that solves the problems for children’s residential care.
