News

Concern over children’s care providers’ 'debt-fuelled' £215m profit

3 mins read Social Care
The six largest children’s social care providers in England made £215m in profit last year, as councils face mounting costs to support vulnerable children and families, a new report shows.
Concerns have been raised over the sustainability of funding for children's homes. Picture: Adobe Stock
Concerns have been raised over the sustainability of funding for children's homes. Picture: Adobe Stock

The Local Government Association (LGA) commissioned report into the finances of social care providers found that some larger providers are achieving a profit of more than 20 per cent on their income.

The LGA also says that many providers’ profit growth is being funded through private equity debt, which raises concerns around their viability and the long-term stability of placements for children.

The largest 16 providers have a combined income of more than £1.37bn, finds the report, although some of this is from providing services outside the UK.

The figures have been released as councils across England face an annual spend of between £1.7bn and £1.8bn on buying fostering and residential care services from the private and voluntary sector. A further £900m is spent on independent special schools.

Register Now to Continue Reading

Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's Included

  • Free access to 4 subscriber-only articles per month

  • Email newsletter providing advice and guidance across the sector

Register

Already have an account? Sign in here


More like this

Youth Work Practice Manager

East Herts, Broxbourne, Welwyn Hatfield

Day Opportunities Manager

Hackney, London (Greater)

Head of Finance

London (Greater)