Action needed on ‘dysfunctional’ children’s social care market

The Competition and Markets Authority has concluded that the UK has ‘sleepwalked’ into a system in which children are failing to get suitable placements in foster care and children’s homes.

Having launched a market study into children’s social care in March 2021, the CMA has published its final report in which it states that there are shortages of appropriate places in children’s homes and with foster carers, meaning that some children are not getting the right care from their placement.

The department also warned that some children are also being placed too far away from where they previously lived or in placements that require them to be separated from their siblings.

As a result of the shortages, high prices are often being paid by local authorities, who are responsible for placing children in appropriate settings, with these costs picked up by taxpayers.

According to the CMA, the main reason for this is the fragmented system by which services are commissioned, which means that local authorities are not able to leverage their role as the purchasers of placements or to plan properly for the future.

The report recommends that the government create or develop national and regional organisations that could support local authorities with their responsibilities in this sector. These would improve commissioning by carrying out and publishing national and regional analysis and providing local authorities and collective bodies with guidance and by supporting them to meet more placement needs in their local area.

Andrea Coscelli, chief executive of the CMA, said: “The UK has sleepwalked into a dysfunctional children’s social care market. This has left local authorities hamstrung in their efforts to find suitable and affordable placements in children’s homes or foster care. We have also identified issues with the financial stability of children’s home providers. It is important to manage the risk of children’s homes providers going bust and local authorities having to pick up the pieces.

“Local authorities cannot be left to face these challenges alone. There are several areas where national governments should make changes to address issues in the sector, including new financial oversight of providers and the development of new bodies to support local authorities with commissioning. With children’s social care currently being reviewed across the UK we want to see our recommendations reflected in any changes to policy.”