The largest overhaul of children's social welfare in a generation

The Government will today launch major reforms to end years of neglect in the children's social care support system. We will help break the cycle of late intervention and keep families together wherever possible so that every child has the opportunity to thrive.

A range of new reform measures will be introduced in Congress to deliver better outcomes and safer lives for children across the country. The Government will empower social workers and everyone who works with children to tell councils to take action against child placement providers who provide substandard care at high costs and focus the system on early intervention.

This comes as local government spending on looked-after children surges from $3.1 billion in 2009/10 to $7 billion in 2022/23. Social workers are too often overburdened and struggle to provide children and families with the help they need before problems arise. escalate.

Education Secretary Bridget Phillipson said:

Our health care system has suffered from years of drift and neglect. It's bankrupting councils, failing families and, worst of all, leaving too many children feeling forgotten, helpless and invisible.

None of us can succeed until we all succeed, so I want to break down barriers to opportunity and end the cycle of crisis through ambitious reforms to give vulnerable children the best chance at life.

We will crack down on over-profit childcare providers, root out unregistered and unsafe provision and ensure early intervention to keep families together and help children thrive.

One of the most entrenched challenges facing children and social workers is some private service providers who siphon off money that should go to vulnerable children, make excessive profits or run unregistered homes that do not meet appropriate standards of care.

Analysis by the Local Government Association found that with more than 1,500 children currently placed, each costing more than $500,000 annually, the 15 largest private service providers are earning an average of 23 per cent. .

The new rules will require major placement providers who provide homes for the most children to share their finances with the government, which could challenge their ability to make money. Increasing financial transparency will ensure that the providers with the most influence on the market do not unexpectedly go bankrupt. Leave children homeless.

There will also be backstop laws to limit the profits suppliers can make, which the government will introduce if suppliers do not voluntarily stop making profits.

Nonprofit providers and those supported by social investments must step up to provide housing to strengthen the system.

To protect the quality and safety of children's homes, Ofsted will also be given new powers to impose civil fines on service providers, allowing it to curb immoral behavior more quickly than existing criminal powers.

More broadly, the government is beginning the process of restructuring the entire children's social care system for early intervention, giving all families the legal right to participate in decisions about their child's entry into the care system.

Further plans for funding for children's social care, including investment in preventive services, will be set out in the coming weeks at the upcoming local government financial statements.

Cllr Arooj Shah, Chair of the Local Government Association’s Children and Young People Committee, said:

It is positive that the Government is pursuing an approach that is rooted in what is known to work for children and their families, building on recent progress following the Independent Review of Children's Social Care.

We are particularly pleased to see a continued focus on early support and family networks and a strong commitment to tackling profiteering and other issues in the children's social care placement market.

Going forward, progress will be limited by significant funding and staffing challenges across children's social care, councils and wider partners.

It is vital that the Government's upcoming spending review ensures that everyone working to keep children safe and help them thrive has the resources they need to do it well.

Children's Commissioner Rachel de Souza said:

Every child deserves to grow up safe, happy and healthy and participate in their community and education. With this legislation, we have the opportunity to fix the way we treat childhood in this country.

Children are paying the price for a broken social welfare system that seeks profit rather than protection. They are enduring things that no child should have to go through. Living in isolation in illegal children's homes often costs them dearly, they are deprived of their liberty without due process, and are often surrounded by guards instead of receiving love and care.

Children in today's social welfare system live lives of disgrace every week. It's not about planning or strategy, it's about taking action without delay. So I welcome the urgency with which this Government plans to tackle some of our most entrenched challenges. There should be no limits to our ambition for these children and I look forward to working closely with Ministers to drive radical reform.

Sir Martyn Oliver, chief inspector at Ofsteds, said:

These new powers will allow Ofsted to do more to ensure that every child's home is a safe and nurturing place, and to tackle illegal and poor homes quickly and effectively. We welcome these reforms and stand ready to deliver on the Government's new demands as soon as possible.

Sarah Cardell, CEO of CMA, said:

We are delighted that the Government is taking the next steps to reform the children's social care market in line with our recommendations. Our market research uncovered a number of concerns, including a lack of suitable places that need to be addressed to ensure vulnerable children and young people can get the homes they need. We will continue to work with the Government to ensure this plan delivers long-term improvements.

Other key measures announced today include:

Ofsted has new powers to inspect a number of homes run by the same company and act on recommendations made in response to vile abuse uncovered at a group of Hesley children's homes.

Communicate a commitment to introduce consistent child identifiers so that information can be shared so professionals can intervene before problems escalate.

There is a requirement for all councils to have a multi-agency child protection team, including children's schools and teachers, to prevent children getting into trouble.

Call on all local authorities to provide support packages to the Staying Close program to help care leavers find and maintain accommodation and access to practical and emotional support up to the age of 21, putting an end to the cliff edge of support for many. at 18. New obligations for parents who require local authority consent to home educate their children if they are the subject of a child protection investigation or under a child protection plan.

The Government will continue to work closely with the sector and local authorities as these changes are introduced to ensure the best possible outcomes for all children and young people and their families.

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