(3 days, 11 hours ago)
Commons ChamberPrivate providers are making, in some cases, between 20% and 30% profit. That is way beyond what we would expect in any other area. Crucially, when we think about where they are making that profit, it is off the back of the trauma, abuse and sometimes very difficult early childhood experiences of some of the most vulnerable children in our country. My hon. Friend is right that the issue he identifies in Hartlepool is sadly felt right across the country. He may wish to know that there are now more than 1,500 children in placements that each cost half a million pounds every single year. We have got to change that.
Analysis by the Local Government Association reveals that the top 15 private children’s social care providers are making an average profit of 23%. It is frankly unacceptable that private firms are profiting at all from vulnerable children, let alone when the care they provide is so often poor and is funded by public money, pushing councils to the brink. I commend the Government’s plans to tackle this urgent issue. Will my right hon. Friend also commit to properly fund not-for-profit and public sector provision to improve children’s social care and to end this obscene profiteering for good?
It is vital that we drive up standards and quality in children’s social care placements, and we want to make sure that we are providing support for councils, charities and others to do precisely that. The highest possible standards and quality of care are essential for children and young people who have been through some very traumatic experiences and deserve our full support. I agree that we must take action on excessive profiteering. It has been left to drift for far too long, and this Government will act.