Children’s Social Care

Laura Trott Excerpts

Monday 18th November 2024 Commons Chamber

[Laura Trott (Sevenoaks) (Con)]

I thank the Secretary of State for advance sight of her statement. I welcome the Government’s focus today on children’s social care, and on the profiteering issues that we identified and set up the market intervention advisory group to look at when we were in government. However, at the heart of the problem is a lack of high-quality places for looked-after children. That is what is causing the high cost of placements, as demand is outstripping supply.

In its 2022 report, the Competition and Markets Authority did not recommend a profit cap, because

“the central problem facing the market…is…lack of…capacity.”

The CMA concluded that taking measures to limit the profitability of providers would

“risk increasing the capacity shortfall.”

While I share the Secretary of State’s desire to ensure that we are getting best value for the taxpayer in this sector, we need to solve the capacity issue first; otherwise, ironically, she risks driving up prices and exacerbating the shortage of places.

The last Government took steps at the Budget in April to address the capacity side, with £165 million allocated for building and maintaining placements for looked-after children. I note that in the most recent Budget, despite the welcome money for kinship care, there was no more money for increasing the number of places for looked-after children. That is essential; otherwise, the strategy on places set out today simply will not work. What plans has the Secretary of State made to increase the number of places for looked-after children? How much she will need to fund that? Did she ask the Treasury for the money at the most recent Budget? What is her assessment of the impact of the changes announced today on the number of places available for looked-after children?

The review carried out by the hon. Member for Whitehaven and Workington (Josh MacAlister), commissioned by the Conservatives in government, found that profit caps would not work as it would be

“relatively easy for providers to reallocate income and expenditure to maintain profit levels.”

Does the Secretary of State agree? Is the 8.8% level of profit that she referred to this morning the maximum level of profit that she is aiming for? If not, what will it be?

The capacity problem rests both on the availability of places and on the demand for those places. The Secretary of State has indicated that she would like to take steps on early intervention, which is obviously vital. Those were not specified in her statement, but I hope that she will bring them to the House at the earliest opportunity, as they are critical to solving the issue. She said that she wants to scrap payment by results. Given that that is an early intervention programme, on the basis of what evidence is she doing so? Does she have an evaluation of what scrapping payment by results will do?

We welcome much else in the statement, including the regional care co-operatives, multi-agency teams, and the enhanced role of Ofsted in the sector. On the latter, is the Secretary of State making any changes to the failure regime for children’s homes and the regularity of inspection? The Children’s Commissioner has done outstanding work on the increasing use of deprivation of liberty orders. Will the Secretary of State outline what action she is taking on that important issue? I am pleased to see the Labour Government take forward our proposal for a unique child identifier. When can we expect the Bill creating that to be introduced?

I want the Government to succeed in this area. Children’s social care is a hidden issue, and getting it right is at the heart of solving so many problems that this country faces. I hope the Secretary of State can reassure me and the House that she will do more to bring forward a greater supply of places for looked-after children, and that an early intervention system is forthcoming, because the futures of looked-after children rely on it.

[Bridget Phillipson]

I can say to the right hon. Lady that we will absolutely do more. We are doing more in four months than the Conservatives did in 14 years. They had 14 years, yet she has the temerity to stand there and carp about the changes that we are bringing in for some of the most vulnerable children in our country. Markets were left to fail, costs were left to soar and, worst of all, children were failed. We will ensure that there are high quality placements for our children who need that provision. That is why we set out £90 million to expand capacity and provision for children who need it.

We have to break this cycle of crisis intervention that is leading to spiralling costs and poor outcomes and bankrupting local councils. That is why we will have much more of a focus on kinship care, foster care and early intervention to support families. I know that where families are supported at the earliest possible moment, we can often prevent problems from escalating, and the right hon. Lady will know that, too. I am determined that we build a system that gives all our children the best possible start in life, and that is why I can confirm that we will give Ofsted the powers that it needs to tackle unregistered and illegal provision and to ensure that it is looking at patterns across providers. We will introduce legislation on everything we have set out today as soon as parliamentary time allows, but I can say to her that this is urgent and we will act as swiftly as we can.

On the right hon. Lady’s question about the Children’s Commissioner, I welcome the work of the commissioner in this important area. As on many other issues, she has cast a light on an important area of policy where we have not acted swiftly and her party failed to act. I would gently point out to her that the Children’s Commissioner carried out that work on behalf of the Department for Education. The Conservatives had 14 years to tackle these issues. I note that the right hon. Lady welcomed some of the measures that we have set out today, but when we set out legislation before this House to tackle the shameful failure that we have inherited, I hope that Conservative Members will back us and, more importantly, back the vulnerable children in our country.