The Department for Education’s LA and School Expenditure statistics for 2022/23 shows an increase in spending on placements in privately-owned children’s homes of around £400m - compared with 2021/22 - to more than £1.8bn.
A smaller increase of just under £200m was spent on private foster care placements across England’s 152 local authorities.
The figures come despite a report by the Competition and Markets Authority, commissioned by Care Review chair Josh MacAlister and published in May 2022, which branded the children’s social care market “dysfunctional”.
Andrew Rome, director of Revolution Consulting, raised concerns that this increase in spending on private services could “swallow up” £600m additional funding for local authorities announced by the government last week.
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