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Commissioning: The impact of inflation

3 mins read Management Commissioning Cost-of-living
Double-digit cost increases for providers are an issue commissioners must navigate carefully, explains Andrew Rome.
Develop a common language around children’s needs. Picture: candy1812/Adobe Stock
Develop a common language around children’s needs. Picture: candy1812/Adobe Stock

The cost-of-living crisis affects every home, every foster home, every children's home.

There is also early evidence emerging that the children's services sector is experiencing staff wage inflation that outstrips the generic inflation indicators due to increasingly acute staff shortages.

This exceptional inflation comes at the same time as Local Government Association reporting that more than two thirds of councils are overspending budgets as demand rises.

Spending by councils buying services for looked-after children, including foster placements and children's homes places is often identified as a key contributor to the overspend.

Contracting for the placement of looked-after children between purchasing authorities and independent sector providers generally includes annual processes to consider the impact of inflation on providers and placing authorities, timed to adjust fees from the start of the financial year in April.

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