Firms profit from children in care
PRIVATE firms running children’s homes have increased what they charge councils by 40 per cent in six years, a watchdog revealed yesterday.
The Competition and Markets Authority (CMA) released the findings as it launched an inquiry into the wider provision of children’s social care services.
It is concerned that rising prices are putting local authorities under further pressure.
The average weekly cost went from £2,841 per child in 2013 to £3,970 in 2019 – equivalent to £210,000 a year.
But, in some cases, councils were charged up to £7,000 each week.
The two largest private providers are CareTech and Keys Group. CareTech, which bought rival Cambian Group for £372million in 2018, looks after 2,000 children through 222 residential facilities, specialist schools and fostering offices.
It saw revenues rise 8.9 per cent to £430million last year, with profits up more than a fifth to £60.5million.
Keys Group, the second biggest provider, is owned by private equity.
Nearly 100,000 children in England, Scotland and Wales are in the care of local authorities.
Of those, around 65,000 live in foster care, 16,000 in children’s homes or what is classed semi-independent living, with the rest in a variety of other placements, according to the National Centre for Excellence in Residential Childcare.
Children are placed with foster carers in England and Wales by either councils or agencies, which can make a profit, but in Scotland, such agencies cannot make a profit.
Announcing the review, CMA chief executive Andrea Coscelli, said: “Children in care are among the most vulnerable in society and they need a system that does not let them down. We are concerned that some children are not getting access to the right placements due to a lack of availability in the system, and that rising prices are putting further pressure on stretched local authority budgets.”