'Teens living in squalor': Campaigners say child social care on 'verge of collapse' despite reforms
By Politics Producer Elisa Menendez
Care campaigners and MPs have warned the government's overhaul of child social care reforms won't stop profiteering and don't offer enough support for teenagers "living in squalor".
Education Secretary Bridget Phillipson announced on Monday the "biggest reform of children’s social care in a generation" with a focus on prevention to keep children with families where possible, empowering social workers, and a crackdown on "exploitative" private care providers.
The new measures, set out in Parliament on Monday afternoon, aim to prevent companies running children's homes from making excessive profits and will strengthen Ofsted's powers to investigate and fine those taking advantage of the stretched system.
Labour hopes to deter private providers who are "siphoning off money that should be going towards vulnerable children, making excessive profits or running unregistered homes that don’t meet the right standards of care".
The reforms have been greatly welcomed by the care sector, which says they tackle a host of issues across the creaking system.
However, some warn they don't go far enough - with one MP warning vulnerable children have become “cash cows” for private equity groups.
There are currently more than 1,500 children in placements each costing the equivalent of over £0.5 million every year, according to analysis by the Local Government Association (LGA).
It also found the largest 15 private care home providers make an average profit of 23%.
Spending by local authorities on looked-after children has more than doubled in just over a decade, from £3.1 billion in 2009/10 to £7 billion in 2022/23, the Department for Education said.
“Children’s social care is struggling under an impossible weight," Phillipson told MPs. "We have more children in care in this country than ever before, and with more and more money following children into the most expensive part of the system, resources are sucked out of preventative services, pushing yet more young people into care, and so the vicious cycle continues – higher costs, poorer outcomes."
Threat to cap profits
Phillipson has warned if providers don't voluntarily lower their costs, the government will introduce a cap which would limit their profits.
The Welsh Government has already banned profit-making from residential and fostering services.
Pressed by ITV News about why the government has promised a "backstop law", instead of introducing a cap now like Wales, Phillipson replied: "Because of the scale of what we face and wanting to do this in a responsible way, we do have to proceed with a bit of care in this area."
"If the costs don't come down we will take further action in order to protect children's interests," she added.
"This is unsustainable in financial terms, it's bankrupting councils but most importantly it's not delivering good outcomes for children - some of the most vulnerable in our country."
However, there are concerns that care providers simply won't lower costs and given there is a shortage of council accommodation available, local authorities will have no choice but to continue to rely on them.
Care campaigner Chris Wild said even if a cap is introduced on "these rogue landlords", it won't be enough to protect vulnerable young people unless the government builds more homes to meet the demand.
Mr Wild, who was in care himself as a child, told ITV News: "The system, at present, is on the verge of collapsing, and the plans don't outline any steps to stop young people aged 16+ from being sent to live in isolated areas due to the lack of safe, social housing.
"Stopping organisations from making huge profits off vulnerable children is the right direction, but I agree with concerns that this should be capped with immediate effect.
"We have hundreds of vulnerable teenagers living in squalor, and they have been for many years."
He warned that in some areas "there's no accommodation at all" and added: "The government isn’t going to build thousands of houses over the next five years. It's very good them saying 'this is the reform, this is the change' but realistically it’s going to take a long time."
Care providers 'bankrupting' councils
Shadow Education Secretary Laura Trott also said the lack of accommodation would mean profit caps “would not work", telling the Commons: “The heart of the problem today is a lack of high quality places available for looked-after children. That is what is causing the high cost of placements as demand is outstripping supply.”
“I would argue that the capacity issue is what we need to solve first, otherwise she [Phillipson] risks, ironically, driving up prices and exacerbating the shortage of places," she added.
Shadow Defence Secretary James Cartlidge pointed to the government's recent increase to employer national insurance contributions as a reason providers will also be reluctant to lower costs.
Facing pressure from her fellow Labour MPs, Phillipson insisted she will "not hesitate" to cap profits if firms fail to curb their gains.
Nadia Whittome urged the government to commit to “properly funding” not-for-profit and public sector care provision for children, while fellow Labour MP Jonathan Brash said in his Hartlepool constituency, “the council is being slowly bankrupted”.
"With over 300 children in Hartlepool in social care, the council is being slowly bankrupted. The top four private providers, on average, are charging £12,000 per child, per week. That’s £624,000 a year per child.
“Does Phillipson) agree with me that only by capping that outrageous profiteering can we protect children, but also get value for money for local council tax payers?”
However, Josh MacAlister, who chaired an independent review in 2022, said the plans are "extremely welcome" and "show that government ministers are serious about reforming children’s social care".
MacAlister, now a Labour MP for Whitehaven and Workington, said: "The plans are extensive and will shake up the entire children’s social care system. On the specific measures to tackle profiteering in children’s homes, these changes are long overdue so it’s a credit to the government that they have taken action."
What are some of the changes?
Ofsted will be given new powers to issue civil fines to care providers who are falling short of required standards. It'll also be able to investigate multiple homes run by the same company.
Providers will be required to share their finances with the government, to allow profiteering to be challenged.
Requirement for local authorities to offer support for care leavers until the age of 21, which includes helping them to find accommodation.
The introduction of a "consistent child identifier" so information can be better shared between professionals to intervene early.
Requirement for every council to have "multi-agency" child safeguarding teams, involving schools, to stop children falling through the cracks.
A new duty on parents where if their child is subject to a child protection enquiry, or on a child protection plan, to obtain permission from the council if they want to home school the child.
A focus on prevention - with funding to come - rather than crisis intervention, with Phillipson saying that "wherever possible, children should remain with their families".
Young people in care 'being groomed into criminal gangs'
And there are concerns that the reforms don't offer enough provisions to support teenagers and young adults leaving care.
As part of the legislation, the government has introduced a requirement for local authorities to offer support to care leavers until the age of 21, including helping them to find accommodation and offering access to practical and emotional help.
For some campaigners, this does not address all the issues at play.
Carolyne Willow, director of charity Article 39, told ITV News: "Thousands of children in care aged 16 and 17 are today living in accommodation where they receive no care at all, often many miles from their home area and prey to exploiters who know they stand alone.
"We had hoped to hear the Education Secretary roundly reject this policy of state neglect, which no loving parent would ever tolerate."
"Local authorities need considerable new investment and a national strategy that demands the very best for children in care, throughout their childhood and into their adult lives, and pushes profit-making to the absolute margins," she added.
Some believe making the care experience a protected characteristic under the Equality Act would help protect young people from exploitation. It would mean those who've been in care would have legal protection against discrimination.
Mr Wild is among campaigners calling for this and believes it would help prevent young people from being treated poorly in care.
"If care experience were to be made a protected characteristic, this treatment would be illegal, and young people in these so-called semi-independent homes would stop being groomed into criminal gangs or suffering from severe mental health issues," he added.
But, he added, "the conversation has started, and that's progress".
Children's Commissioner Rachel de Souza says she welcomes "the urgency with which this government is setting out plans to tackle some of the most entrenched challenges", while the Children’s Charities Coalition said the government’s “commitment to reforming and rebalancing children’s social care towards early intervention and family support services, is a huge step forward in fixing a struggling system under immense strain”.
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