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Care Review chair slams profiteering from children’s residential care

1 min read Social Care
The chair of the Independent Review into Children’s Social Care has launched a stinging attack on private companies that make a profit from running children’s homes.
Josh MacAlister previously ordered a CMA investigation into profiteering. Picture: Frontline
Josh MacAlister previously ordered a CMA investigation into profiteering. Picture: Frontline

Josh MacAlister said that profiteering from the sector is “indefensible” given demand and budgetry pressures facing children’s social care.

He was due to make the comments at a speech to the Independent Children’s Home Association today (June 10).

“I would implore those of you who are owners of private children’s homes, particularly large groups, to act with responsibility to bring down costs and reduce profit-making and to be responsive to the needs of children,” he was due to stay.

“It is better that plans to make this happen are started.”

MacAlister said the current system of profiteering from residential care “cannot continue” adding, “we need to ask, if we were creating care today that was good enough for all our children, what would it look like? I do not believe the current system is one we would choose to design”.

The UK’s competitions regulator the Competitions and Markets Authority (CMA) is investigating complaints from within the children’s sector around the children’s residential care market. This had been called for by MacAlister and is looking at issues affecting the sector, such as increasing costs and lack of availability of places.

A Local Government Association (LGA) study earlier this year found that some independent residential and fostering providers are making profits of more than 20 per cent on their income.

Concerns around private sector involvement in residential care also surround the level of debt among large providers. The LGA found that four of the seven largest independent providers had more debts and liabilities than tangible assets.

 

 

 

 

 

 

 

 


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