Outsourcing 'not a priority' for struggling children's services, says think-tank

In its report, Commissioning in children's services, Demos states that outsourcing can help local authorities secure better outcomes for children and young people, and argues that government and local authorities should be "more proactive" towards it.

The think-tank reviewed literature on children's services' responses to failure, and looked at the independent trusts implemented in Doncaster and Slough councils, and social enterprise Achieving for Children in Kingston and Richmond.

Its report argues that outsourcing should be used as a way to prevent councils getting to crisis point, rather than when it is already failing, so that the process can be properly planned.

"We found significant evidence to suggest that reviewing outsourcing arrangements should not be a priority in the context of failure," the report states.

"Commissioning outsourced services is complex, time-consuming and currently under-supported - it is not easy to get right at the best of times, and certainly not when a local authority is in crisis.

"We believe that not enough attention has been paid to how outsourcing can be used to the benefit of local authorities already performing relatively well.

"Why not use innovative methods of service delivery to prevent local authorities from getting to crisis point in the first place, rather than saving those methods until they are already at that point?"

"A local authority already performing well would be able to ensure it has a plan in place for developing relationships, gathering data and clarifying outcomes before the outsourcing process began, unlike a local authority in crisis," the report states.

Demos has called on the government to change the national guidance on outsourcing, which it said currently presents it only as a response to failing services.

Author of the report and Demos researcher, Simone Vibert, said: "When supporting some of the most vulnerable children in society, it's vital local authorities deliver the best services possible.

"Commissioning services from a varied range of providers can achieve this - but only when done strategically and under the right circumstances. Commissioning is an art, not a science, and local authorities need guidance and support to do it well."

Andrew Isaac, chair of Children's Services Development Group, an alliance of independent education and care providers, called for children's services leaders to heed the recommendations of the report.

"The findings of this report confirm the pressing need for a proactive and constructive partnership between local authorities and providers of children's services at a time of stretched budgets and growing demand," he said.

"There is significant expertise and resource, as well as high-quality, specialist provision that can be harnessed to deliver value for money and meet the needs of vulnerable children."

Dave Hill, president of the Association of Directors of Children's Services, said: "Local authorities are working tirelessly to find innovative and effective solutions to improve services and best meet the needs of children, young people and families.

"We've seen some local authorities create social enterprise companies to deliver their children's services, and others commission out their youth or permanency services.

"There's no one-size-fits-all solution to improving services and what might be right for one local area will not necessarily work for another. It's crucial that local areas are free to put in place the best arrangements to suit local needs."