Question to the Department for Education:

To ask Her Majesty's Government what assessment they have made of the profits declared by companies providing children’s care homes; and what steps they are taking to prevent tax-payer funded care home providers from making excessive profits in future.

The Competition and Markets Authority (CMA) launched a market study in March 2021 exploring the lack of availability and increasing costs in children’s social care provision, including children’s homes, and fostering. It examines concerns around high prices paid by local authorities and inadequate supply of appropriate placements for children. The interim report was published on 22 October 2021 and noted that some relevant parties had expressed concerns around the level of profits made by large private sector providers of children’s homes. It considers the profit levels to be a symptom of the underlying problem of insufficient supply of appropriate places and the difficulties local authorities have in engaging effectively in this market.

The full report, including any recommendations, will be published by the 11 March 2022.

In addition to the CMA market study, the independent children’s social care review is taking a fundamental look at the needs, experiences, and outcomes of those supported by children’s social care, and what is needed to make a real difference. The review is a once-in-a-generation opportunity to reform systems and services, with the aim of better supporting, protecting, and improving the outcomes of vulnerable children and young people.

​The government will respond to both sets of recommendations after the respective reviews have concluded.