The study, published as part of the Department for Children, Schools and Families' Commissioning Support Programme, reveals that while residential special schools and fostering agencies have shown strong growth in recent years, profitability of children's homes providers has been low, with some providers faced with challenging levels of private equity and bank debt.
Andrew Rome, of Revolution Consulting and previous commercial director of now-defunct care provider Sedgemoor, said the findings show the need for an urgent reassessment of local authority commissioning strategies.
The study states: "The children's homes sector is especially sensitive to occupancy rates, and commissioners should adopt strategies to bring stability of demand to the sector and the use of more substantial contract arrangements."
Register Now to Continue Reading
Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's Included
-
Free access to 4 subscriber-only articles per month
-
Email newsletter providing advice and guidance across the sector
Already have an account? Sign in here
