Unregistered Children’s Homes: Fees

Baroness Smith of Malvern Excerpts

Monday 28th October 2024 Lords Chamber

[Baroness Tyler of Enfield]

To ask His Majesty’s Government what steps, if any, they are taking to lower fees being charged by unregistered children’s homes.

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

My Lords, profiteering from vulnerable children in care is unacceptable. Children must live in safe, high-quality homes, which is why it is a legal requirement for children’s homes to register with Ofsted. This means that they can be inspected and children are safe, and that where there are failings, they are addressed. We will strengthen regulation through the children’s well-being Bill so that children’s social care delivers high-quality outcomes for looked-after children at a sustainable cost to the taxpayer.

[Baroness Tyler of Enfield (LD)]

I thank the Minister for her Answer, but there remains a real concern about the number of children still living in unregistered children’s homes. Is the Minister aware of the recent BBC investigation, which highlighted that some unregistered children’s homes are charging up to a staggering £20,000 a week and still failing to keep very vulnerable children safe, which a senior family court judge has described as breathtaking? What immediate steps are the Government taking to address this issue? Does the Minister also agree that the key aim of addressing excessive costs, which I fully support, should not lead to the eradication of children’s homes, and that we need a mix of high-quality, registered provision to meet all children’s needs?

[Baroness Smith of Malvern (Lab)]

The noble Baroness is right that some extraordinary amounts of money are being charged by placement providers. The Local Government Association found, for example, that in 2022-23, 91% of respondent councils paid at least £10,000 per week or more for one placement, compared to 23% in 2018-19. That is why, as the noble Baroness says, we need to ensure that a range of safe, regulated, high-quality placements are available for children, and to ensure that where there is excessive profit, we take action against that as well.

[Lord Laming (CB)]

My Lords, does the Minister agree that local authorities rushed into outsourcing their services some years ago, and now there is insufficient provision but they are paying these huge fees? Could she give some thought to the number of children who are being placed, time after time, in different places, sometimes many miles away from their home base? That is not good for these very vulnerable children.

[Baroness Smith of Malvern (Lab)]

The noble Lord is right, in that in the children’s home market, 83% of provision is now private. To be clear, there is high-quality private children’s home provision, just as there is in the local authority and voluntary sectors. What is important, as the noble Lord says, is that children can be placed securely in those homes—that they are not being constantly moved from one to another—and that they get the care they need. It is absolutely true that moving children frequently and taking them far away from friends and perhaps other family members is not in their best interests. That is why we need to tackle this, and we will take further action on regulating the sector in the children’s well-being Bill.

[Baroness Thornton (Lab)]

My Lords, I welcome my noble friend’s announcement today. Surely, the promised reform of public services must prioritise the provision of residential care for our most vulnerable looked-after children, and we have to deal with inadequate care and profit gouging. There are some great examples of good provision, particularly in the voluntary sector and social enterprises. Can my noble friend assure me that this issue is being addressed across government, given that the Cabinet Office is involved regarding procurement, and the MHCLG and Department for Education are also involved? Will my noble friend meet with me so that I can share some of the good practice I have seen and heard about in recent months?

[Baroness Smith of Malvern (Lab)]

My noble friend is absolutely right. Because of the disproportionate costs being placed on local authorities and the findings that Ofsted sometimes makes in unregulated homes, if we are not careful, we can forget that some brilliant work is being done, as my noble friend says, in the voluntary sector, in social enterprises and in private and local government-provided facilities. We should celebrate that, and that should be our aspiration for all children. My right honourable friend the Commons Minister and I will be very pleased to hear about those examples. They will inspire us to take forward the provisions we are planning in the children’s well- being Bill.

[Lord Hayward (Con)]

My Lords, the Minister will recognise that a disproportionately high number of the prison population comes from children’s homes; it is a very sad figure indeed. While she is looking at the issue of unregistered children’s homes, can she also look at the broader issue of the number of children from children’s homes who finish up in prison?

[Baroness Smith of Malvern (Lab)]

The noble Lord is right. Across a whole range of measures, care leavers do worse than those who have not been in care. Whether or not they end up in prison, they are more likely to be not in employment, education or training and are more likely to be homeless. That is why we must ensure that the care and concern we have for children while they are in care continues after they leave care, and that we set those children up for life as well as possible while we, as the state, have responsibility for looking after them.

[Lord Patel of Bradford (Non-Afl)]

My Lords, although there is clearly good practice in many children’s homes, there are also examples of really bad practice. Do the Minister and the Government have any plans to formally and professionally regulate some of the senior staff, at least, in children’s homes? A number of staff are from very diverse backgrounds and are not necessarily professionally qualified social workers.

[Baroness Smith of Malvern (Lab)]

The noble Lord is right that the leadership of these homes is very important in ensuring that they are providing the quality of care we want to see. In thinking about the provisions in the children’s well-being Bill, we are working with the sector, with local authorities, on where we need to improve regulation. In considering that, I will certainly feed back the point the noble Lord makes about staff.

[The Lord Bishop of Newcastle]

My Lords, at the last count in March 2023, 41% of children’s homes in England were located in the north of England. What steps are the Government taking to provide additional support to areas of the country where there is a disproportionately higher number of children in the care home and care system?

[Baroness Smith of Malvern (Lab)]

The right reverend Prelate raises an important point. In the development of private children’s homes, we have seen a growth: for example, it is possible to get hold of accommodation more cheaply, but that does not necessarily mean that such homes are where children need them. Some 25% of all homes nationally are in the north-west, despite only 16% of children who need to be looked after in residential care coming from the north-west. That is why there has been investment to support local authorities to improve existing provision and to create additional placements; and it is why, through the children’s well-being Bill and in other ways, we will work to ensure that, wherever a child needs care, there is high-quality care that does not involve them having to travel or the local authority facing excessive costs.

[Baroness Barran (Con)]

My Lords, the noble Baroness, Lady Tyler, raised the issue of the costs associated with some unregistered children’s homes, but I want to ask the Minister a more basic question. We know from Ofsted’s 2023 guidance that it is illegal to send a child, even a child with a deprivation of liberty order, to an unregistered children’s home, yet the case to which the noble Baroness referred, as I understand it, was about a year later. What are the Government doing to make sure that children do not go to unregistered homes at all, whatever they cost?

[Baroness Smith of Malvern (Lab)]

The noble Baroness identifies the absolute difficulty and the challenging circumstances that directors of children’s services and others find themselves in. For example, on a Friday afternoon, when faced with having to find a placement for a child urgently, they have no other option, because of a failure to provide sufficient places, than to place a child in an unregulated home. This is so unsatisfactory for everybody, and that is why, through the provisions we will bring forward in the children’s well-being Bill and through appropriate investment in increasing the number of places, we will try to ensure that that happens far less in the future.