Children's Wellbeing and Schools Bill (Fifth sitting)

Stephen Morgan Excerpts

Committee stage
Tuesday 28th January 2025 Public Bill Committees

[Catherine McKinnell]

I thank my hon. Friend the Member for Southampton Itchen for his powerful and personal testimony, and for his clear commitment to these issues. I also thank my hon. Friend the Member for Bournemouth East for his clear and important contribution.

My hon. Friends have set out the reasons why we are providing that continuity of support when care leavers reach the age of 18, through the Staying Put programme, and why we are now legislating to add Staying Close to the duties of local authorities. It is to provide that care to leavers; to help them to find suitable accommodation and access services, including those relating to health and wellbeing support; and to help them develop and build their confidence and their skills as they get used to living independently. It is also why we are investing in family-finding, mentoring and befriending programmes to help care leavers to develop those strong social networks, which they can then turn to when they need advice and support.

As hon. Members have rightly said, it is really important that care leavers are supported to get into education, employment or training—the right hon. Member for East Hampshire clearly said that as well. That is why a care leaver who starts an apprenticeship may be entitled to a £3,000 bursary, why local authorities must provide a £2,000 bursary for care leavers who go to university, and why care leavers may be entitled to a 16-to-19 bursary if they stay in further education.

On the question raised by the right hon. Member for East Hampshire, more than 550 businesses have signed the care leaver covenant, offering care leavers a job and other opportunities, and we continue to deliver the civil service care leavers internship scheme, which has resulted in more than 1,000 care leavers being offered paid jobs across Government. We have a real commitment to improving education outcomes for children in care, which will help to support them into adulthood and reduce the likelihood of them not being in education, employment or training. We will continue to support that.

The hon. Member for Harborough, Oadby and Wigston asked how the measure in this clause interacts with national offers. The Government set out guidance for local authorities on the duties and entitlements for care leavers, and we are working to develop the detail of those proposals to make sure that local authorities work together with the Government to improve support for care leavers. With specific reference to higher education, we already have a number of duties to support eligible care leavers in higher education. It will certainly be part of the expectation of the local offer that those options are open to care leavers. It is an important aspect to support.

In response to my hon. Friend the Member for Southampton Itchen, we absolutely agree about bringing the good practice of local authorities into the local offer. We work closely with a number of good local authorities, and there is a lot of really good practice around. The Government intend to bring those authorities into our work so that we have updated guidance to ensure that best practice is spread as far, wide and consistently as possible. With that, I urge the Committee to support clause stand part.

Question put and agreed to.

Clause 8 accordingly ordered to stand part of the Bill.

Clause 9

Accommodation of looked after children: regional co-operation arrangements

Question proposed, That the clause stand part of the Bill.

[The Parliamentary Under-Secretary of State for Education (Stephen Morgan)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I look forward to working through the measures in this landmark Bill with all Members, as has been the spirit so far.

The children’s social care market is not working effectively. The Competition and Markets Authority and the independent review of children’s social care recommended a regional approach to planning and commissioning children’s care places. My Department will support local authorities to increase the number of regional care co-operatives over time. As Members will have noted, the clause refers to those as “regional co-operation arrangements”. As a last resort, the legislation will give the Secretary of State the power to direct local authorities to establish regional co-operation arrangements.

Where a direction is in place, regions will be required to analyse future accommodation needs for children, publish sufficiency strategies, commission care places for children, recruit and support foster parents, and develop or facilitate the development of new provision to accommodate children. We expect regional care co-operatives to gain economies of scale and to harness the collective buying power of individual local authorities. I hope that the Committee will agree that this clause should stand part of the Bill.

[Neil O’Brien]

Regional co-operation is something that the previous Government were extremely enthusiastic about and worked to build up, so the Minister will not be surprised to hear that we support the clause. The previous Government’s “Stable Homes, Built on Love” policy paper said that the Government would work with local authorities to test the use of regional care co-operatives—regional groupings of authorities to plan, commission and deliver care places—in two areas. Those two pathfinders would trial an approach within the legal framework, with a view to rolling it out nationally following evaluation as soon as parliamentary time allowed. Were we in office, I suspect that we would be very much considering the same clause. This Government have announced that those two pathfinders are going ahead, in Greater Manchester and the south-east, from this summer.

When we consulted about the idea—it is a good idea —there was a lot of support, but there were also a lot of concerns and questions about the size of the groups, the risk that they would be too removed from the child, and the loss of relationships with small providers in particular. As the Minister said, this is a recommendation from previous work, including from the independent review of children’s social care, which we commissioned. Obviously, we hope that such groups will be useful in providing local authorities with greater purchasing power and more options when they are securing accommodation for children in care, but we think it is important to be clear about the objectives to avoid any unintended consequences. I have come to think that, often, it is when we all agree that we are doing a good thing that we should ask ourselves the difficult questions to ensure that we are not making a mistake.

The key issue in the “children’s home market”—I put that in scare quotes, because I hesitate to use the phrase in the current context—is a lack of supply, which leads to children being placed far away from their roots and support networks in accommodation that does not always match their care plan. We then see children going missing and having repeated placement moves. I wonder whether the Minister will put on record in Committee the aims for the regional care co-operatives, other than purchasing power, and how they will address the other issues.

Will the Minister respond to some specific issues raised in our consultation? One issue is that it is harder for smaller providers and specialist charities, which are obviously part of the offer for children in care at the moment, to engage with regional care co-operatives. What does he think about that risk and what does he plan to do about it?

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[Tom Hayes]

I rise to speak in favour of regional co-operation arrangements, primarily because of what we have seen in two important reviews or evaluations. The recent independent review of children’s social care that I referred to highlighted a system at breaking point, as we also heard from the Minister. The insight from that report was that how we find, match, build, and run foster homes and residential care for children in care radically needs to change. When the Competition and Markets Authority looked at this area, it also identified major problems, such as profiteering, weak oversight and poor planning by councils—the verdict on the system is damning.

The independent review recommended that a co-operative model should sit at the centre of bringing about change. The values of our movement could provide the loving homes that children in care need. I particularly support this clause because this feels like a very Labour Government Bill—one that has at its heart the co-operative model that is obviously such a big part of our labour movement.

My hope is that regional care co-operatives could gain economies of scale and harness the collective buying power of independent local authorities to improve services for looked-after children. There are obvious benefits to using a co-operative model to solve those problems—the values of self-help, self-responsibility, democracy, equality, equity and solidarity apply directly to how these regional care co-operatives would be run. In a social care market that has been described as broken by the Minister and by those reports, it is critical to bring the co-operative model more into what we provide.

[Stephen Morgan]

I thank hon. Members for their thoughtful comments, suggestions and questions. On the point that the hon. Member for Harborough, Oadby and Wigston made about learning from the pathfinders, the Department has consulted widely with the sector on the proposals for regional care co-operatives. Learning from the pathfinders has shaped the proposed legislation and the definition of the strategic accommodation functions. We will develop expertise in areas such as data analysis and forecasting, as well as targeted marketing, training and support for foster carers. Working collectively with improved specialist capabilities should allow for greater innovation so that local areas are better able to deliver services for children in care.

I turn to the points made by the hon. Member for Richmond—

[Munira Wilson]

Twickenham. We are in Richmond borough.

[Stephen Morgan]

My apologies. I did know that, but I was trying to be impressive by remembering the hon. Lady’s constituency and I got it badly wrong.

On the hon. Lady’s point about where placements should be, local authorities will continue to have the same statutory duties to find the most appropriate place for looked-after children, including that they should live near home, so far as is reasonably applicable. Regional care co-operatives will assist local authorities with these duties. Placement shortage is a key driver of children being placed in homes far from where they live; regional care co-operatives should improve that by increasing local and regional sufficiency, making more places available locally for children who need them.

[Neil O’Brien]

Will the Minister confirm that—as I think is the case—the Government would use their powers under the clause to impose regional co-operation agreements only as a last resort, and that we would not push this on everybody who does not want it?

[Stephen Morgan]

The shadow Minister is absolutely correct. We want to work collaboratively with local authorities in rolling this out. We will not force local authorities to do so. I thank him for enabling me to make that clear.

Question put.

[Damian Hinds]

Forgive me, Mr Stringer; I know that the Minister has finished, but may I speak again, with leave?

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[Ian Sollom]

My understanding is that this change follows a trend of children being deprived of their liberty outside the statutory route by being housed in unsuitable accommodation not registered with Ofsted, often far from home and family. That has been partly addressed in the questions from the hon. Member for Harborough, Oadby and Wigston.

The success of this provision will depend on the regulations. What actually makes a setting capable of being used for the deprivation of liberty? Will there be a requirement with respect to education in that setting? Will they need to be registered with Ofsted? It is not entirely clear. When will regulations relating to this provision be brought forward? Is it the intention that they will mirror the scheme for the secure accommodation?

The law around the deprivation of liberty is incredibly complex. Without proper legal advice and representation, it is very hard for families to understand what is going on and what options they have. It is not clear yet what legal aid will be available to families or the child themselves when an application is made under the new route. Can the Minister clarify what will be available with respect to legal aid, or put a timetable on when we will get that clarification?

[Stephen Morgan]

Amendment 24 seeks to place a legal duty on local authorities to provide therapeutic treatment for children placed in secure accommodation—that is, a secure children’s home. The Government’s view is that the amendment is not necessary as there are a number of existing legal duties on local authorities to ensure that wherever children are placed, including in secure accommodation, their needs are met, including the needs for therapeutic treatment. This is part of the duty on local authorities, under primary legislation, to safeguard and promote the welfare of any child that they look after.

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[Neil O’Brien]

I am grateful to the Minister for his informative speech, but can I press him to respond to the specific points made by CAFCASS and the Children’s Commissioner? The Minister is alluding to some of them as he goes along. The first is about requiring explicit Secretary of State approval beforehand. The second is about specifying the frequency of review, particularly for younger children. The third is about having an automatic requirement for children’s protection plans as the child comes out. The fourth, which the Minister has alluded to, is about them being put into illegal settings, and whether something legislative should be done at this point to stop that from happening at all.

[Stephen Morgan]

I am coming to the end of my speech and hope to answer the points that the Opposition spokesperson made. I will certainly take away the issues that he raised.

I thank all Members for their contributions and questions on this very important matter. On consistency, the views of the Children’s Commissioner and age, I know that this point was raised in the other place only yesterday by a former Minister, and I am grateful for that. It is worth saying here, too, that the child rights impact assessment is informing our work on the Bill. I give the shadow Minister the assurance today that I will take on board these comments.

[Neil O’Brien]

Is the child rights impact assessment for the Bill published so that we can see it?

[Stephen Morgan]

There is no legal obligation for England to publish that assessment, but we are certainly using it to inform our work on the Bill.

[Neil O’Brien]

I think Ministers have said in previous sittings that it will be published during the process of scrutiny, along with the impact assessment. Is that still the case?

[Stephen Morgan]

I am referring to the conducted children’s rights impact assessment, where children are directly impacted by the policies and/or particular groups of children and young people are more likely to be affected by others. As I mentioned, there is no requirement to publish these documents in England. However, the documents are currently under review and we will advise on our next steps shortly. More broadly, with regards to the impact assessments, these will be published in due course.

[Neil O’Brien]

I thought I had heard Ministers say previously that they were planning to publish this for our benefit—that we would get both the impact assessment and the children’s rights assessment. Perhaps it is me who is sowing confusion and the Minister may still intend to publish this document. I cannot see any reason why the Government would not publish it, so can I get an assurance that that is going to be published?

[Stephen Morgan]

To state this clearly, the impact assessment has not yet been published but is obviously informing our work. Obviously, various different assessments are undertaken and I will certainly get back to the hon. Member on those points.

[Munira Wilson]

The Minister has said a number of times that, by law, the child rights impact assessment does not have to be published. In the interests of transparency and for all of us to do the right thing by children, does he not agree that even if he does not have to publish it, he really ought to do so?

[Stephen Morgan]

To be clear, we will be publishing the regulatory impact assessments. We will certainly be using the evidence from the children’s rights impact assessments to inform our work.

I turn to the points raised by the Opposition spokesperson on placements of children under the age of 13. Depriving a child of their liberty must always be a last resort, but it is sometimes necessary to keep that child and others safe. These children are some of the most vulnerable in our society. We must do all that we can to keep them safe and help them get on well in life. When a child under the age of 13 is deprived of their liberty and placed in a secure children’s home, the local authority must obtain approval from the Secretary of State before applying to the court. That requirement is set out in regulations that reflect the added seriousness of depriving children so young of their liberty.

The Opposition spokesperson and the right hon. Member for East Hampshire (Damian Hinds) also made a number of broader points about child protection plans and deprivation of liberty. Local authorities’ care-planning duties are clear that when there are looked-after children, they must have a long-term plan for a child’s upbringing, including arrangements to support their health, education, emotional and behavioural development, and their self-care skills.

The statutory guidance “Working together to safeguard children 2023” is clear about the actions that local authorities and their partners should take, under section 47 of the Children’s Act 1989, if a child is suffering or likely to suffer significant harm, as well as the support that should be provided under section 17. If there is a concern about a child’s suffering, or if a child is likely to suffer significant harm, the local authority has a duty to make an inquiry under that Act. “Working together to safeguard children” sets out the actions that the local authority and their partners must take when there are child protection concerns. That includes putting in place child protection plans when concerns are submitted. I hope that the Committee agrees that the clause should stand part.

[Neil O’Brien]

I hope that we can clear up the confusion about whether we will see the children’s rights assessment. I cannot see any good reason why we would not be able to see that perfectly routine assessment. None of these things is the end of the world, but not having the impact assessment of the thing that we are quite deep into line-by-line scrutiny of seems to further compound this problem. Obviously, no one can defend that; it is not good practice.

I slightly pre-empted what the Minister said—he had scribbled some last remarks—but I was glad that he came to some of the points raised by CAFCASS and the Children’s Commissioner. I raised them partly because I know that their lordships will be extremely interested in these specific questions. There probably is scope for improvement of this clause to do some of those other good things, because this is such a serious issue for those very young children.

We will not vote against clause stand part, but I will press our amendment to a vote. I heard what the Minister said, but I just make the point that there is scope for improvement in the clause, and I suspect that their lordships will provide it.

Question put, That the amendment be made.

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[The Chair]

With this it will be convenient to discuss clause 12 stand part.

[Stephen Morgan]

Clauses 11 and 12 will strengthen Ofsted’s regulatory powers to allow it to act at pace and scale when that is in the best interests of children. Specifically, clause 11 strengthens Ofsted’s powers to hold provider groups—parent undertakings, in legislation—to account for the quality of the settings that they own and control. This ensures that Ofsted can take the quickest and most effective action to safeguard vulnerable children, without adding duplication within the existing regime. It will allow Ofsted to look across provider group settings as a whole and take action at provider group level, rather than being limited to doing so setting by setting as it is now. It will also ensure that a provider group is accountable for the quality of the settings that it owns.

Where Ofsted reasonably suspects that requirements are not being met in two or more settings owned by the same provider group, it will be able to require senior people in the provider group to ensure improvements in multiple settings. The requirement applies both to settings operated by a single provider and to multiple providers owned by the same group. Ofsted will be able to request that the provider group develops and implements an implementation and improvement plan to ensure that quality improves. The plan will need to address the issues identified by Ofsted and be approved by Ofsted if it is satisfied that the plan will be effective in addressing the issues.

The clause gives the Secretary of State the power to make regulations to provide that non-compliance by the provider group means that the providers that it owns are not fit and proper persons to carry on a setting. That will prevent a person from being registered in relation to new settings if their owner has failed to comply with the relevant requirements under these provisions. That should act as a deterrent and ensure compliance with the requirements.

Clause 12 gives Ofsted the power to issue monetary penalties to providers that have committed breaches of requirements, set out in or under the Care Standards Act 2000, that could also be prosecuted as criminal offences, including operating a children’s home without registering with Ofsted. Ofsted will also be able to issue a provider group with a fine for non-compliance with the requirements set out in clause 11. The fine will be at Ofsted’s discretion and is unlimited in legislation. That will act as a significant deterrent, so that provider groups comply with these requirements. Clause 12 ensures that Ofsted has an alternative to prosecution where that is currently the only enforcement option against those seeking to run a children’s home without registration. Ofsted will not be able to impose a monetary penalty on a person for the same conduct where criminal proceedings have been brought against them in relation to that conduct.

To act as a deterrent and to ensure transparency for the public, the clause gives the Secretary of State the power, by regulations, to require Ofsted to publish details about the monetary penalties that it has issued. Ofsted must also notify local authorities when a monetary penalty has been issued, as it is currently required to in relation to other enforcement actions that it takes. Finally, the clause provides that the issue of a monetary penalty could be used as grounds for cancellation of registration.

[Neil O’Brien]

We are entering a whole new section of the Bill. I will make a number of points now that we could come back to when we debate future clauses, but I hope we will not have to. I hope that we can have discussions about the principle and philosophy now and we might be able to move faster later, but we can come back to them if necessary.

As we turn to the clauses dealing with children’s homes, I want to start by checking that the Minister has the same basic understanding of the situation, and the same philosophical take on what we are trying to do, as I do. First and most importantly, there is a question about the underlying structural problems that have driven high costs for local authorities in the provision of residential care for children and young people, and there is a second question about the best approach to tackling that, both legislatively and non-legislatively.

On the first, does the Minister agree with me, at least in principle, that the main issue driving the high costs is a shortage of foster care, which is driving local authorities to send children into expensive children’s homes at best, or into unregistered provision at worst? Research by Ofsted in 2022 suggested that residential care was part of the care plan for just over half of the children whose cases it reviewed. To put that the other way round, almost half of children who ended up in residential care should ideally not have been there. Crucially, the research shows that the original plan was for over one third of children to go into foster care.

Although the Bill makes changes to the provision of information about kinship care, which is good, there is nothing that will produce the step change that we need to increase the number of foster carers, which is the thing that would really take down the demand and the high costs. That point is common to the discussions that we will have about cost-capping social workers, cost-capping individual care homes and reviewing whole entities. I do not think that those measures are bad; I just do not think that they are ultimately the underlying solution. That is a point that the Committee will hear me make several times today.

In his independent report commissioned by the previous Government, the Member for Whitehaven and Workington (Josh MacAlister) highlighted that in the year ending March 2021,

“160,635 families came forward to express an interest in becoming a foster carer, and yet just 2,165 were approved”.

That is just 1.3% making it through. It might be that some of those were just initial approaches and not all of those people were deadly serious, but that is still a very small share. He continued:

“Local authorities perform a wide range of roles and appear to be struggling to provide specialist and skilled marketing, recruitment, training and support for such an important group of carers. In 2020/21 recruitment and retention among independent fostering agency services led to a net increase in capacity of 525 additional households and 765 additional foster care places. In contrast, there has been a decrease in capacity of 35 households and 325 places in local authorities over the same period”.

By definition it is quicker, and in quite a lot of cases better, to provide foster care than to build a new children’s home. I want to press the Minister on what he thinks is the explanation for that 99% gap between those expressing an interest in fostering and final approvals. What is he doing to close that gap? He will be aware that there is a perception that it is almost impossible to become approved as a foster carer. We looked at this in my family some years ago. We started in on it through my work as a constituency MP; I have met many constituents who are foster carers. They are incredible people and I pay tribute to them. A woman I know well has fostered 70 children as well as adopting. I honestly think these people are amazing.

The Government really need to use the Bill—this rare legislative slot, as one of the Ministers said—to increase the number of foster and kinship carers. Publishing information is good, but it will not change much unless it is accompanied by a radical attitude to approvals by local authority social work teams. When the alternative—which we are getting to in this clause—is children being sent miles from home, placements breaking down, children going missing and high costs to local authorities, there is obviously a burning platform for change.

If I were the Minister—he is free to take this suggestion or not—I would commission a month-long desktop review to look at the pipeline and all the decisions to reject applications to be foster carers that got fairly far down the track, and understand what can be learned from them. That could shape amendments either here or in the other place and be a huge benefit to him. I can think of a senior official in a Government Department—someone the Government trust to run a major public service—who has two kids, provides a loving home and wanted to foster but was turned down. There are many such cases. Everyone knows the phrase “too many books in the house”, but I strongly encourage Ministers to dig into the underlying question of why we lose so many opportunities to get the foster carers that would take off the pressure that we are trying to take off with these clauses.

A key recommendation of the independent review of children’s social care led by the hon. Member for Whitehaven and Workington was to introduce mixed models combining residential and foster care, particularly for older children, who are the fastest growing part of this cohort. That was part of our brief for the initial pathfinder sites for the regional care co-operatives, which I mentioned in the debate on a previous clause. What assessment has the Minister made of that approach? What impact does he think its adoption might have? Is there any interesting early data from the pilots in Greater Manchester and the south-east?

Speaking of mixed models, I encourage the Minister to look at the incredible work of the Royal National Children’s SpringBoard Foundation, which, as he knows, does amazing work looking after care-experienced and edge-of-care children in a network of state and independent schools. It has been working with the DFE since 2020—something I am very proud that we brought in—and has provided incredible, transformative opportunities for disadvantaged young people. I encourage the Minister to build on that and go further.

On the specifics of clause 11, after the terrible abuse of children supposedly in the care of the Hesley Group, it is absolutely right that the Government are trying to identify systemic safeguarding problems in organisations that manage multiple children’s homes, independent fostering agencies and residential special schools. Our only concern, which is quite serious, is that we should allow for rapid action, not something that drags on and becomes a time and resource-consuming process.

I heard what the Minister said in introducing the clause about providing an alternative to prosecution, but I do not want to lose sight of the importance of prosecution. My noble Friend Baroness Barran told me that when she was a Minister in the Department for Education, she was already able to request inspections of every home in a group where one was judged to be failing, and did so on at least one occasion. Ultimately, we need experienced people to go into a home quickly and see what is actually happening. I think this is within the spirit of what the Minister said, but I hope he would agree that there is often no better alternative to actual inspection and actual prosecutions.

To use an example from a very similar area, the Department can also request an “improvement plan”, which is the main vehicle proposed in these clauses, in the case of independent schools, but that does not always work well in practice. The reasons for that are instructive for the kinds of issues that I hope Ministers will think about here. What ends up happening is that plans are sent in varying degrees of adequacy, and time—in some cases literally years—can be wasted with a lot of letter writing back and forth. I urge the Minister to think about the action he wants in those kinds of cases. Imagine being in the middle of a drawn-out improvement plan process in another case like the Hesley Group case—and that is before the inevitable appeals, which the clauses provide for, kick in.

We have not tabled an amendment to do this—I wonder, though, about the other place—but we think that the Minister needs to confine the improvement plan idea to more minor administrative cases or lower-level concerns. That is where it might be more appropriate. We worry that we might get similar processes to those that we have seen in independent schools, where we have a resource-intensive, rather bureaucratic and slow process that goes on for a long time with a lot of back and forth and appeals. Ultimately, we sometimes just need to get to the point. That is our broad concern.

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I will end where I started. I am totally sympathetic to Ministers’ intent here, but we worry that if we are not careful, there will be a lot of process and bureaucracy, which must not be allowed to get in the way of prosecuting those who are doing the wrong things, and must not be allowed to get in the way of keeping children safe.

[Stephen Morgan]

I thank the shadow Minister for his contributions and questions. He made a number of practical points and asked a number of specific questions.

[The Chair]

Order.