Lack of provider engagement ‘led to collapse of regional procurement framework’
Fiona Simpson
Monday, July 10, 2023
The collapse of a regional procurement framework for children’s residential care, involving seven North East local authorities, was driven by private providers “not engaging” with such schemes, the president of the Association of Directors of Children’s Services (ADCS) has said.
Speaking to CYP Now, John Pearce, who is director of children’s social care at Durham County Council, which is involved in the framework, said: “This type of system isn’t working anymore because providers won’t engage.
“Without looking at ways to remove control of the so-called market from these providers, these frameworks won’t do a great deal to help local authorities because providers don't want to engage with groups of councils when they are already in control."
The NE12 education, health, and care (EHC) framework was set up by procurement solutions organisation NEPO in 2016, to increase regional access to placements in residential children’s homes, special schools and colleges and short breaks services. It is led by Newcastle City Council.
However, the framework agreement is due to fold at the end of the next financial year, Newcastle has confirmed.
A spokesperson for Newcastle City Council said: “The residential care market is very complex and the framework does not fully meet the needs of the local authorities.”
The collapse of the framework raised questions over government plans to pilot regional commissioning co-operatives (RCCs) in two areas of England from next spring.
Pearce told CYP Now that RCCs should not be implemented in the form currently planned by ministers.
In his opening speech at the ADCS’s annual conference, which took place in Manchester last week (6 July), he told delegates: “I can say with certainty that RCCs, as currently defined, will not address the issues that ADCS has been raising for a number of years.”
He also criticised the practice of some private placement providers, citing a report by the Competition and Markets Authority around profiteering from children’s social care.
He said: “The largest providers are making materially higher profits and charging materially higher prices; and the levels of debt associated with some of the largest providers is a real risk to the stability that children in care experience.
“In market economics, the simple response to demand is to increase supply.
“However, in a system where some of the biggest providers are bankrolled by global private equity firms, is it any wonder that supply is stifled and decisions based on favourable business models rather than children’s needs or outcomes determine whether our children can stay in their home?
“The risks and real life implications for our children and young people are becoming increasingly untenable and we owe it to them to get this right.”
Plans for RCCs were put forward in the Independent Review of Children’s Social Care and taken forward by the government’s response Stable Homes Built On Love.
ADCS published, earlier this year, an alternative view of RCCs which it has submitted to the government.
