The Way We Care (or a perfect storm…)

There have been a lot of recent publications relating to children’s social care recently.

We have written on:

• Keeping Children Safe, Helping Families Thrive
• The Children’s Commissioner’s report on Deprivation of Liberty Safeguards 
• The Competition and Markets Authority report on children’s social care provision

There is one more report we thought our readers might also be interested in. This one also came out last month and was written by the County Councils Network and IMPOWER, The Way We Care.

In it you will read of their concern that care placements represent a severe and present financial threat to not only children’s services but all local public services and society. Their analysis leads them to conclude that without extra funding for councils they face a cumulative funding gap of £54bn over the next five years. They warn of councils providing “little more” than care services in just a matter of years and this threatening their ability to remain solvent unless their statutory obligations change.   

They are critical of:

• Regulation feeling it drives risk adverse provider behaviours which weight regulatory risk over the best interests of children and young people
• The relationships between commissioners and providers noting a focus on buying rather than market shaping and innovation  
• Local authorities and health partners failing to agree on appropriate multi agency support and funding. Reference is made to “perceived cost shunting” from the NHS
• Exclusion from schools being a cause and consequence of both entry into care and placement breakdown. They particularly note the growing number of children with identified SEND

There are lots of interesting statistics within the report including:

• 0% (yes zero) of surveyed representatives of local areas considered that investment in external residential care provided good value for money
• 51% of children and young people in residential care are without severe or complex needs
• 45% increase since 2019 in the number of children and young people looked after who are placed in children’s homes, semi- independent living accommodation and secure units
• 21% increase since 2019 in the number of children and young people looked after who are placed in independent provision
• Since 2019 the average cost of residential placements for children in care has risen by 52% (from £3,935 per child, per week to £5,980)
• The average annual cost of providing a residential home for a looked after child now exceeds £300,000
• In a survey of Chief Executives of 37 Authorities 16 could be at risk of declaring bankruptcy in 2026/27, with a further six the year after
• From 2022/23 to 2029/30 there is projected to be a 74% increase (from £12.8bn to £21.4bn) in total expenditure on children’s services

The report seeks system wide reform involving greater collaboration of all stakeholders, supported by central government policy to make a difference. It recommends several national and local measures across three aims:

1. Prevent
2. Supply
3. Better utilise

Independent sector providers will be relieved to see that the conclusions in chapter four do state that attempts to remove “profit” are unlikely to effectively solve or mitigate challenges and could even serve to compound them.

Recommendations are set out at chapter five and include:

• Reduce the number of children entering care and increase safe exits from care
• Increase the supply of care provision through a mix of strategic partnerships with providers and in house provision
• Local areas to deliver an immediate review of needs-led, strengths-based reviews of all existing care placements
• Transition to new ways of working with providers including long term relational strategic models – sharing risk, investment and skills
• Local areas to collaborate with NHS Integrated Care Boards and mental health provider collaboratives to establish multi-agency investment approaches to supporting children who are looked after

2025 is going to be an interesting year.

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