Narey backs residential child care but calls for better value

The review into the quality and use of children's homes - commissioned by the Prime Minister last October - concluded that standards are generally high despite relatively little investment going into developing best practice, but that councils have failed to deliver sufficient "value" for the amount spent on placements.

Children's charities have largely welcomed the review's findings, and the government has said it will act on a number of its recommendations.

In his report, Narey says the role of children's homes is "misunderstood", the challenges of the children they care for "underestimated" and the contribution they make "too easily dismissed".

He said many social work professionals and senior managers view residential child care as a "last resort" and somewhere to "park children temporarily", which in turn has led a reduction in the use of children's homes.

"I found little - beyond a certain optimism - to justify that view," Narey said. "There is a very real and unmet demand for the greater use of children's homes as part of an initial assessment for older children when first coming into care, and those on the edge of care."

Latest Ofsted figures show there are around 7,000 children in residential care, and that three quarters of children's homes are rated "good" or better by the inspectorate.

However, Narey's review makes 34 recommendations for improvements to the residential child care system, including calling for the creation of a Residential Care Leadership Board - comprising experts, Department for Education officials, local authorities and a range of providers - to lead the sector and report directly to the children's minister. Such an approach has been developed in adoption, and Narey, the government's former adoption adviser, says it will lead to quicker and more consistent improvement in provision.

The review criticises local authorities for a "failure to obtain reasonable value for money" when using residential care - it is estimated councils spend around £1bn a year on children's home places. Narey believes a leadership board could improve commissioning practice, help councils get better value, advise ministers on demand for services, and develop best practice in workforce recruitment.

Another of Narey's recommendations is for the creation of Staying Close provision to enable young people leaving residential care to stay in accommodation near their children's home to help smooth the transition to independent living. In its response to the review, the government has committed to trialing Staying Close later this year.

Other review recommendations for councils include: