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Fee cuts 'could threaten residential placements'

Residential care providers have warned children's services leaders that any attempts by councils to cut the fees paid to independent homes could see care placements jeopardised.

The Independent Children’s Homes Association (ICHA) fears local authorities could look to reduce the amount they pay care home providers in an effort to cut costs – many children’s services departments are under pressure to find savings as councils try to cope with reduced funding from government.

The ICHA has written to the Local Government Association and Association of Directors of Children’s Services to say that its analysis of the sector shows that there is no possibility of fee reductions “without major implications”.

The letter, signed by ICHA chief executive Jonathan Stanley, states: “Providers know that you face considerable pressure on your budgets that may lead some of you to look for fee reductions.

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