The working group, formed by the National Centre for Excellence in Residential Child Care (NCERCC), said a long-term plan for the sector is one of four priorities for improving services.
Speaking at NCERCC's national conference in Birmingham last week, the centre's manager, Jonathan Stanley, said: "Our task was to think about the current perceptions of residential childcare, to identify what excellent residential care might look like and any factors that would support the development of a service able to respond to diverse needs."
The working group also wants funding to follow the child, greater placement stability and a good career structure for social care professionals. More money and co-operation between agencies is needed, added Stanley.
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