Education Secretary announces reforms to children’s social care in order to crack down on exploitative providers

November 18, 2024 TruthUSA

Under new policies, placement providers will have to share their finances with the government.

An overhaul of children’s social care will crack down on “exploitative” providers and increase transparency around their finances, as announced by the government.

Education Secretary Bridget Phillipson praised the new range of reforms, stating that they will put an end to the neglect of the children’s social care support system.

This initiative comes as local government spending on children in care has increased from £3.1 billion in 2009–2010 to £7 billion in 2022–2023.

Currently, there are over 1,500 children in placements, costing over £500,000 per case annually. The top 15 private providers are making an average profit of 23%, according to data from the Local Government Association.

The government highlighted on Monday that certain private providers are engaging in practices such as “siphoning off money,” making “excessive profits,” or operating unregistered homes that do not meet care standards. The reform package aims to ensure transparency in providers’ spending, with Ofsted being granted new powers to hold them accountable.

The watchdog will have the authority to issue civil fines to providers and investigate companies that manage multiple homes. This action follows revelations of abuse at the Hesley Group of children’s homes.

A report by the Child Safeguarding Practice Review Panel, released in 2022, revealed evidence of abuse and harm in three children’s homes in Doncaster operated by the Hesley Group.

New regulations will compel providers offering homes for the most children to disclose their finances to the government. This measure ensures that providers with the greatest impact on the market do not unexpectedly fail, leaving children in care without a home, according to the Department for Education.

‘Years of Drift and Neglect’

A “backstop” law will be implemented to limit the profits that care providers can earn. This legislation will be enacted if providers do not voluntarily reduce their “excessive” profits.

In a broader sense, the government aims to shift the focus toward early intervention, granting families a legal right to participate in decisions regarding children entering care. By offering timely support, the government hopes to decrease the number of children entering the care system and foster more stable family environments.

Responding to measures to combat “exploitative” children’s care providers, Phillipson stated: “Our care system has suffered from years of drift and neglect. It’s bankrupting councils, letting families down, and above all, leaving too many children feeling forgotten, powerless, and invisible.

“We want to break down the barriers to opportunity and end the cycle of crisis through ambitious reforms to give vulnerable children the best life chances – because none of us thrive until all of us do.

“We will crack down on care providers making excessive profit, tackle unregistered and unsafe provision, and ensure early intervention to keep families together and help children to thrive.”

Dame Rachel de Souza, the children’s commissioner for England, voiced support for the reforms, asserting: “Children are paying the price of a broken social care system that prioritizes profits over protection.

“They are enduring things no child should ever have to: living in isolation in illegal children’s homes, often at enormous cost, deprived of their liberty without due process, often surrounded by security guards instead of receiving love and care.”

Deprivation of Liberty Orders

The announcement of reforms to children’s social care coincided with a new report by the Children’s Commissioner on challenges facing children deprived of their liberty by courts.

High Court deprivation of liberty orders—issued at a rate of well over 1,000 per year—are granted for children considered high-risk of harm to themselves, from others, or occasionally towards others. The majority of these children are within the care system.

The report discovered that while some children reside in appropriate accommodations, many live in highly inappropriate housing, such as illegal children’s homes, Airbnbs, or hospital wards while awaiting discharge.

These children’s fundamental rights are “often ignored” by a system that prioritizes profit-making over protection and allows decisions to be influenced by local resources, according to De Souza.

De Souza urged the government to make “significant investments” to develop new and safe accommodations for children living in trauma and at risk of harm. The commissioner also called for stricter legislation to provide transparency on decision-making in this area and to give children more influence in the process.

Ensuring oversight from a judge to review local authority decisions every three months is also crucial, as stated by De Souza.

The set of reforms from the government aims to remove the obstacles faced by children deprived of their liberty, as highlighted by Phillipson in a statement.

PA Media contributed to this report.

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