Children’s Care Homes: Private Equity

Lord Watts Excerpts

Tuesday 30th January 2024 Lords Chamber

[Baroness Barran (Con)]

My noble friend pointed to a more fundamental question, namely: why have local authorities and charities, which used to provide these services, stepped back in a world where the private sector can make a decent return on them?

[Lord Watts (Lab)]

My Lords, let me be clear: it seems from the Minister’s answers that the Government are quite happy for these companies to rip off the taxpayer. When will they do something about the taxpayer being ripped off by companies that are adding to debt and making huge profits?

[Baroness Barran (Con)]

I am not aware of the specific cases the noble Lord referred to, and it is dangerous to generalise in this area. We have seen disgraceful behaviour by some providers—noble Lords will remember the case of the Hesley homes where unforgivable child abuse went on—but that is not what we are seeing across the whole sector. What we need is to move those children who do not need to be in children’s homes out of them and into foster care or kinship care—and that is where we are focusing.