CYP Now - Inspections Clinic: Large social care providers

Large private companies continue to play an increasing role in the provision of children’s home and fostering placements. Jo Stephenson analyses what the data says about the quality of large providers.

Ofsted says its focus is on how children are cared for, with size and structure of providers ‘largely irrelevant’. Picture: JackF/Adobe Stock

The latest Ofsted data on the biggest independent sector providers in England shows a slow and steady increase in private investment.

There have been concerns about high levels of profit-making, particularly among fast-growing groups backed by private equity or floated on the stockmarket.

Research commissioned by the Local Government Association (LGA) found council spending on children’s residential and fostering placements with independent providers increased by more than £2bn over the past two years.

The research by Revolution Consulting, published this summer, found the largest 20 providers have an income of £1.58bn and had made £278m in profit.

The LGA described the findings as “very concerning”. Earlier this year, the chair of the independent review of children’s social care in England Josh MacAlister said profiteering from the sector was “indefensible”.

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