Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the impact of the privatisation of children's social care on the quality of service provision.

Children's homes provide care for some of the most vulnerable children and young people in the country. There are many different types of providers who operate in this sector, playing a vital role in providing homes for children in care. Ofsted has a crucial role to play in upholding children’s social care standards and making sure children are safe in care. They provide independent evaluations on the quality of support, safeguarding, and leadership in children’s social care to ensure all children in need receive the services they need. The proportion of children’s homes of all types judged outstanding or good was 79% as of 31 March 2023 (10% outstanding, 69% good), an increase from 2022, when the proportion was 77%.

Local authorities have a statutory duty set out in Section 22(3) of the Children’s Act 1989 to make sure that there is sufficient provision in their area to meet the needs of children in their care. Local authorities are sometimes paying too much for placements, and the department’s view is it is not right that council taxpayers are footing the bill. The department recognises the concerns particularly around large providers with complex, and sometimes opaque, ownership structures. There is an awareness that a provider exiting the market could have a significant impact on the care of children and young people living in their provision, and it is not a desirable position to be waiting for this to happen. The department is developing a financial oversight regime to bring greater transparency, for example on ownership, debt structures and profit making, and prevent sudden market exit across both independent fostering agencies and residential children’s homes.

​Support is being provided to local authorities to meet their statutory duties through £259 million capital funding over this Parliament to maintain capacity and expand provision in both secure and open children’s homes. To support local authorities with forecasting of demand for and supply of children’s social care placements in their area, the department is also seeking to deliver national support with forecasting, procurement and market shaping to local authorities. Lastly, the department has committed to developing a core overarching set of Standards of Care for fostering, children’s homes and supported accommodation. This will help simplify the regulatory landscape, raise quality, and ensure there are consistent safeguards across different types of settings.