The strategy will contain a range of new measures aimed at delivering better outcomes for children in care, including giving social workers powers to “take action” against children’s placements providers that deliver “subpar standards of care at sky-high costs to councils”, the Department for Education says.
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There will be new rules requiring private children’s home and foster care providers to share their finances with the government, which the DfE says will “allow profiteering to be challenged” and improve financial transparency of the children’s care sector.
A “backstop” law will be drafted that will put a limit on the profit that providers can make that the government will introduce if, the DfE says, providers do not voluntarily “put an end to profiteering”.
The government is also urging not-for-profit organisations, including those backed by social investment, to set up homes “to strengthen the system”.
To protect quality and safety in children’s homes, Ofsted will be given new powers to issue civil fines to providers, which the DfE says will be more effective at deterring unscrupulous behaviour than existing criminal powers.
Other measures in the strategy, which is set to be presented to parliament today, include:
- New powers for Ofsted to investigate multiple homes being run by the same company, acting on the recommendations made in response to the abuse uncovered at the Hesley group of children’s homes.
- The introduction of a consistent child identifier, making sure information can be shared between professionals so they can intervene before issues escalate.
- The requirement for every council to have multi-agency child safeguarding teams, involving children’s schools and teachers.
- The requirement for all local authorities to offer the Staying Close programme – a package of support which enables care leavers to find and keep accommodation.
- A new duty on parents where if their child is subject to a child protection enquiry, or on a child protection plan, they will need local authority consent to home educate that child.
Bridget Phillipson, Education Secretary, said: “Our care system has suffered from years of drift and neglect. It’s bankrupting councils, letting families down, and above all, leaving too many children feeling forgotten, powerless and invisible.
“We want to break down the barriers to opportunity and end the cycle of crisis through ambitious reforms to give vulnerable children the best life chances – because none of us thrive until all of us do.
“We will crack down on care providers making excessive profit, tackle unregistered and unsafe provision and ensure earlier intervention to keep families together and help children to thrive.”
According to analysis by the Local Government Association, there are now over 1,500 children in placements each costing the equivalent of around £500,000 every year, while the largest 15 private providers make an average of 23% profit.
Cllr Arooj Shah, chair of the Local Government Association’s children and young people board, said: “We are particularly pleased to see an ongoing focus on early help and family networks, and a strong commitment to tackling profiteering and other problems in the market for children’s social care placements.
“It is vital that the government uses the forthcoming Spending Review to ensure that all those working to keep children safe and to help them thrive have the resources they need to do that well.”
Andy Smith, president of the Association of Directors of Children’s Services, said: “The suite of measures aimed at addressing excessive profiteering from the care of vulnerable children and young people and more support on creating, as well as commissioning, the right placements in the right place at the right time is helpful.
“We know some of the largest private equity backed providers carry very high levels of debt which risks children effectively losing their home overnight if a provider fails. More financial accountability and a focus on governance is welcome as is the expansion of corporate parenting responsibilities and extra support for care experienced people.”
Josh MacAlister MP, chair of the Independent Review of Children’s Social Care which reported its findings in 2022, said the plans will turn recommendations in his review into legislation showing the government is serious about reforming children’s social care.
“The plans are extensive and will shake up the entire children’s social care systems,” he said. “On the specific measures to tackle profiteering in children’s homes, these changes are long overdue so it’s credit to the government that they have taken action.”
