In this environment, there remains a group of vulnerable young people in care who still require services. The number of looked-after children continues to increase. This, and the uncertainty of future levels of demand for care services, makes the planning process for local authorities and providers a difficult balancing act.
In order to streamline the contracting processes, local authorities have formed purchasing consortia which, understandably, concentrate on price-driven contracting, thereby reducing costs. The issue for the provider is to deliver cost savings, quality services and keep children safe, which is quite a tall order.
But without guaranteed placement volumes for providers, it has not been possible to achieve savings and discounts for local authorities. Providers have also been able to opt out of tendering processes, knowing that if they continue to recruit carers in the right locations, they will still attract referrals when children cannot be appropriately matched elsewhere.
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