Children’s Care Homes: Private Equity

Lord Whitty Excerpts

Tuesday 30th January 2024 Lords Chamber

[Baroness Barran (Con)]

The first thing—whether the noble Baroness agrees or not—is that it provides an enormous amount of capacity, and in her zeal to address the profitability of the sector we need to consider also the stability of those placements for children.

[Lord Whitty (Lab)]

My Lords, I think it was only two Prime Ministers ago who promised before the last general election that they would fix social care. The problems that we have talked about today apply to the whole of the social care sector. In effect, those who pay for care—whether for elderly parents or local authorities for children and others, who are very vulnerable people—are subsidising private equity companies’ profits. When are the Government going to get round to fixing it and have a whole new policy for social care that improves the conditions for everybody?

[Baroness Barran (Con)]

We have announced our new social care strategy. The noble Lord will be aware of the independent review of children’s social care, which we have acted on. We are now starting to implement the initial pathfinder sites to test our new family-led approach to social care. As he said, these are vulnerable children and families, so we need to do this judiciously.