Care commissioning is an emotive issue. Following a decade or more of austerity in the public sector, it is understandable that children’s services and charity leaders bristle when reading about soaring profits among private sector providers.
In a sector with not enough residential or foster care placements it is inevitable that rising demand will result in prices going up. It is also inevitable that some providers have taken advantage of this, particularly where unplanned placements are made.
However, in most cases care providers operate on low profit margins and deliver good quality care. Independent sector associations also point out that many do this while working within multi-year agreements that restrict their ability to raise rates in line with rising costs (see special report).
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