Children’s Care Home Providers: Financial Oversight

15. Whether she has made an assessment of the potential impact of the Children’s Wellbeing and Schools Bill on levels of financial oversight for children’s care home providers.

The Children’s Wellbeing and Schools Bill will introduce a financial oversight scheme for children’s social care. That will increase the transparency of children’s social care providers so that we can make accurate, real-time assessments of financial risk so that local authorities can step in and take swift action in the interests of children.

Last Friday, the Public Accounts Committee, of which I am a member, published its report into the financial sustainability of children’s homes. The report highlights that there is very little financial and governance oversight of private companies, which run 84% of children’s homes in the UK. Given that the 15 largest private children’s homes providers make average profits of 22% on an average charge per child per year of £318,000, what more can the Government do to ensure that children’s homes have appropriate financial and governance oversight?

I welcome the hon. Member’s interest in this issue, and the reports from the National Audit Office and the Public Accounts Committee. Children’s social care issues looked at through the prism of profit making in children’s homes demonstrate how much radical reform we need for children’s social care. That is why we are putting £2.4 billion into resetting the system overall so that it intervenes earlier. We will also bring forward plans very soon to set out an expansion of fostering. That is in addition to measures in the Bill that is currently going through the other place to introduce a financial oversight mechanism and a profit cap to address the issues that the hon. Member has mentioned.