New Delhi: The UK government is enacting significant changes to the children’s social care system to address years of neglect and improve outcomes for vulnerable children, a press release stated. Education Secretary Bridget Phillipson announced reforms aimed at creating a more secure and brighter future for children by focusing on early intervention, cracking down on exploitative care providers, and increasing transparency around their finances.
The government’s overhaul is motivated by what Phillipson described as the system’s “years of drift and neglect,” which has left “too many children feeling forgotten, powerless and invisible.” The government’s approach will empower social workers to address substandard care being provided by some providers at high costs to councils. The reforms come as local government spending on looked-after children has risen from £3.1 billion in 2009/10 to £7 billion in 2022/23, with social workers often overburdened by heavy caseloads, the release noted.
One of the key challenges the government is addressing through this overhaul is the excessive profits made by some private providers. Analysis by the Local Government Association reveals that over 1,500 children are in placements costing over £0.5 million annually, while the largest 15 private providers average a 23% profit. The government acknowledges that these excessive profits are a symptom of a system where providers are siphoning off money that should be going toward vulnerable children.
To combat this, new rules will require key placement providers to disclose their financial information to the government, allowing for scrutiny of profiteering. The government will implement a “backstop” law to limit provider profits if they do not voluntarily curb excessive earnings. The government argues that this increased financial transparency will prevent providers with a significant market impact from unexpectedly failing and leaving children without homes.
The government is also encouraging not-for-profit providers and those backed by social investment to establish homes.
“Our care system has suffered from years of drift and neglect. It’s bankrupting councils, letting families down, and above all, leaving too many children feeling forgotten, powerless and invisible,” said Phillipson.