Children’s Wellbeing and Schools Bill

Baroness Blake of Leeds Excerpts

Tuesday 17th June 2025 Lords Chamber

[Lord Addington (LD)]

My Lords, listening to the noble Baroness introduce these amendments, I am remembering how many times, as a Minister, she batted me back with a question. As I interpret these amendments—if I have got it wrong, I am sure I will be told—they basically ask how this will work. Where are the levels of intervention when something does not work? How do we get through? It was a long and complicated series of questions, but that is what Committee is for. If we could get an idea of the answers, if the Minister has them or can tell us where we can find them, I think we would all feel a little more comfortable before the next stage.

[Baroness in Waiting/Government Whip (Baroness Blake of Leeds) (Lab)]

My Lords, the amendments in this group are all in the name of the noble Baroness, Lady Barran. Just taking the amendments as they are, the majority of residential settings are owned by provider groups—organisations that own the providers that run settings. The legislation refers to provider groups as “parent undertakings”. Provider groups have influence over how a setting is run, yet they are not accountable in legislation for the quality of the settings they own.

Clause 12 is intended to complement Ofsted’s existing powers. It will allow Ofsted to take action at scale and pace to improve the quality of care when it reasonably suspects that two or more of the provider group settings are not meeting regulatory requirements. In answer to the noble Baroness’s question, together with Clause 13, which provides additional enforcement powers for Ofsted, it is part of this Government’s strategy to ensure the safety and well-being of vulnerable children in care.

Amendments 135 and 136 seek to give Ofsted the power to inspect provider groups. Inspection is not necessary at provider group level. Given the existing robust regime for the inspection of settings, the inspection of provider groups would not give Ofsted any additional information that it does not already have to ensure quality of care and the safeguarding of children’s settings, which is obviously the purpose of what we intend to do here.

The inspection of provider groups would add substantial burden to the public purse and would not result in improvements to the quality of care for children, as inspections would focus on provider group policies rather than on the lived experience of children. Additionally, they would not be effective in holding provider groups to account without establishing a burdensome inspection system. Given that there are over 400 provider groups, I think we understand the scale of the additional work that we are talking about.

The clause gives Ofsted the power to serve an improvement plan notice on a provider group to improve quality in two or more of its settings. This is vital, as it will ensure the quickest and most effective action to secure change at scale. Clause 13, which we will come to shortly, gives Ofsted powers to take action against the provider groups when they do not improve the quality of their settings. This amendment would not impose any requirements on the provider groups that Ofsted could enforce against.

Amendment 137 seeks to empower Ofsted to use the services of an independent person, as provided for by Regulation 44 of the Children’s Homes (England) Regulations, to carry out an unannounced visit to a children’s home for administrative breaches or minor concerns about the quality of care being provided. The amendment proposes that, after an independent person has inspected the children’s homes or home, the local authority may issue an improvement plan notice based on the findings.

Under current regulations, the registered person of a children’s home must ensure that an independent person visits the home at least once each month, and this visit may be unannounced. The independent person should have the skills and understanding necessary to form an impartial judgment about the quality of the home’s care. They must produce a report about their visit which sets out their opinion on whether children are effectively safeguarded and whether the home effectively promotes children’s well-being.

Ofsted, the placing authorities and the registered provider, registered manager and responsible individual must be given a copy of the report. The local authority where the home is located must also be given the report if it requests it. Ofsted uses these reports to inform whether further activity or inspection is necessary. They may be used to inform Ofsted decision-making around improvement plan notices to ensure its effective role as the regulator. Ofsted must be the only body responsible for issuing improvement plan notices. Giving local authorities the power to issue an improvement plan notice would mean duplication and would offer no protection additional to what is already in place.

Amendment 138 seeks to probe how an improvement plan might work in practice. Provider oversight has been designed to enable Ofsted to address poor-quality care at scale and at pace. For example, where Ofsted inspects two children’s homes and believes quality is being impacted by the provider group’s policies or management, it could reasonably suspect that those issues were in all homes owned by the provider group. It would be able to use the new powers to ensure that the provider group drove up standards in all its homes.

The provider group would be required to develop and implement an improvement plan to address the issues identified by Ofsted as being of concern. This plan will be approved by Ofsted, if it is satisfied that it will be effective in addressing the concerns. Ofsted can fine the provider group if it fails to submit or implement the improvement plan. When Ofsted is satisfied that improvements have been made, it will consider the plan completed. This will result in improvement in multiple settings simultaneously, which could not be achieved through inspection of provider groups, as would happen if Amendments 135 and 136 were adopted.

Finally, Amendments 138A, 138B and 138C seek to require Ofsted to notify the relevant local authority when an improvement plan notice has been served, cancelled or appealed. Ofsted is currently required to notify all local authorities where certain enforcement actions such as suspension or cancellation of registration are taken. Clause 13 amends these requirements to include a requirement for Ofsted to notify all local authorities where a provider group is issued with a monetary penalty for failing to prepare or implement an improvement plan. This is a more proportionate balance for ensuring local authorities are aware of problems arising and ensuring that children’s accommodation is not unnecessarily disrupted. Not only would additional notifications, as required by these amendments, require significant extra resources both from Ofsted and from local authorities, but the notifications would prove unnecessary where issues were resolved or successfully challenged.

It is important to stress that provider oversight will not be the only tool in Ofsted’s toolbox to tackle poor-quality care where it finds it; it will continue to have its existing powers to work with individual homes, including suspending or cancelling their registration, if it has serious concerns.

I recognise that the noble Baroness, Lady Barran, has asked some detailed questions, as it is her right to do. I am sure that she will understand that I do not have all the answers at my fingertips and that she will give me the space to look specifically at the issues that she has raised. I shall write to her and make sure the responses are shared with Members in the usual way.

[Lord Addington (LD)]

Could we make sure that we are all copied in?

[Baroness Blake of Leeds (Lab)]

As always. That was the point that I was making. For all the reasons given, I would kindly ask the noble Baroness to withdraw her amendment.

[Baroness Barran (Con)]

I thank the Minister for her very detailed reply and for her commitment to write; that is much appreciated.

To respond to the Minister’s remarks, the reason for tabling Amendments 135, 136 and 137 is that the improvement plan is for the parent company or parent undertaking, but it is for when there are concerns about two or more of their establishments or agencies, in the language of the Bill. I understood that to mean, given the severity—that Ofsted suspects that there are grounds for cancelling the undertakings registration—there could within that be concerns about the safety of children in those homes. So the spirit of Amendments 135, 136 and 137 was that we should have really experienced people, either inspectors or Regulation 44 visitors, going in, not to inspect the parent—I am sorry if my amendments were unclear in that regard—but to inspect the subsidiary undertakings. Maybe when the Minister comes to write, she could just reflect on that point.

In the reference to Regulation 44, the amendment should have stated that

“Ofsted may issue an improvement plan notice”,

not

“the local authority may issue an improvement plan notice”.

Of course, the Minister is absolutely right—the local authority cannot issue an improvement plan notice. But again, it was just trying to get at the idea that, if there was a variation in the levels of concern and the level of breach, for a lower-level breach, a Regulation 44 visitor could advise Ofsted. There is an urgency, if it is thought that an undertakings registration should be cancelled, which will not be met by the improvement plan approach on its own.

In relation to the Minister’s remarks about Amendments 138A, 138B and 138C, I think the answer is that, if the process works reasonably quickly, the proportionality that she set out is completely reasonable. If it gets bogged down, and it comes down to, “We sent you a plan, Ofsted doesn’t think the plan is fit for purpose”, and it goes back and forth and back and forth, we would not get the speed that might be needed to prevent other local authorities commissioning a provider when there are grave concerns, as set out in the Bill. The proof of the pudding will be in the eating. In the meantime, I beg leave to withdraw my amendment.

--- Later in debate ---

[Baroness Blake of Leeds (Lab)]

There is a deafening silence. I turn to group six and the amendments, all in the name of the noble Baroness, Lady Barran, which concern Clause 13: Amendments 138D, 138E and 139A. They seek to exclude natural persons from the provisions relating to the issue of monetary penalties. Clause 13, as drafted, gives Ofsted an additional power to issue monetary penalties to providers that have breached requirements set out in, or under, the Care Standards Act, including operating a children’s home without registering with Ofsted, which they could also prosecute as a criminal offence.

Ofsted will also be able to issue a monetary penalty to provider groups for failure to comply with new requirements set out in Clause 12 of the Bill. This measure will ensure Ofsted has a full range of enforcement powers so that it can act proportionately and at pace, which will act as a deterrent. This includes individuals who operate children’s homes, other establishments or agencies. It is difficult to see why a natural person running a children’s home, other establishment or agency should not be subject to the same enforcement powers as a partnership or organisation when they have breached the law, and where Ofsted could prosecute that natural person for the relevant breach.

Furthermore, based on data from Companies House, these amendments would result in Ofsted being unable to fine 10 individuals who currently operate children’s homes if they breached the law, compared with the 2,738 companies that operate children’s homes. Ofsted have told me directly that it strongly opposes any amendment that would exclude natural persons and limit who financial penalties can be imposed on for illegally operating children’s homes without being registered. Individuals will—and do—gain financially from illegally operating children’s homes without being registered, and should not be excluded from the potential consequences of doing so. All the discussions in Committee have been about protecting children and making sure that they are safe. We have to make sure that, in this area, in spite of the comments made by the noble Baroness, children and their safety are at the forefront of our minds. It is also worth noting that it is common in legislation for natural persons to be subject to financial penalties in the same way as operations and companies.

For example, the Tenant Fees Act 2019 enables fines to be imposed on landlords, who may be natural persons, for breaching the ban on letting fees being charged, and the Data Protection Act 2018 enables the Information Commissioner to impose fines on persons, including natural persons, who have failed to comply with various notices issued by the ICO.

I have already stated the reasons for the need and intent of these additional powers. However, I add that the clause ensures that Ofsted has an alternative to prosecution where that is currently the only enforcement action. Ofsted will not be able to impose a monetary penalty on a person for the same conduct where criminal proceedings have been brought against them in relation to that same conduct. Further, and importantly, to act as a deterrent and to ensure transparency for the public, the clause gives the Secretary of State the power by regulations to require Ofsted to publish details about the monetary penalties it has issued. Ofsted must also notify local authorities when a monetary penalty has been issued, as it is currently required to do in relation to other enforcement action it takes. A monetary penalty may be used by Ofsted as grounds for cancellation of registration.

I assume it will come as no surprise to the noble Baroness that I will have to write to her on the financial assessment and the other questions she raised on the specific requirements in place. I am more than happy to do that, and to share it with any interested parties. Therefore, for the reasons I have outlined, I kindly ask the noble Baroness not to press her amendments and that the clause stand part of the Bill.

[Baroness Barran (Con)]

I thank the Minister, and I will keep my remarks brief. It was very helpful of her to set out the examples of where natural persons are fined, as in data protection and with landlord and tenant. I did not quite follow, but I think she said there were 10 people who might escape this, which seemed like a small number in the totality. I suppose I would still argue that criminal proceedings could be brought, even if they could not be fined, but it was helpful to get those examples and I look forward to her letter. I beg leave to withdraw my amendment.