Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Acknowledged
Department accepts recommendations for regional commissioning to improve children's residential care provision.
Conclusion
The Department accepted recommendations to introduce regional commissioning made by the Competition and Markets Authority and Josh MacAlister in 2022. The MacAlister review recommended that local authorities should group together in regional organisations, taking collective responsibility for running public-sector residential care and fostering and for all commissioning.77 The Children’s Commissioner told us that regional bodies would help to reduce volatility in individual areas, with regions more able to predict the number and types of places they will need.78
Government Response Summary
The Committee noted the Department accepted recommendations to introduce regional commissioning. The government states it agrees with the Committee's recommendation and aims to implement the model nationally by Spring 2029, backed by over £10 million of funding to support the setup of up to six new RCCs in 2026.
Government Response
Acknowledged
HM Government
Acknowledged
6. PAC conclusion: The Department has failed to address the problem of local authorities competing for places and the effect that has on driving up costs. 6. PAC recommendation: The Department should clarify, as part of the Treasury Minute, the principles behind the collaborative regional approach it is working towards, by when it expects to implement its model nationally, and how it will support local authorities in the meantime. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2029 6.2 Every child deserves safe, high-quality care close to home. Regional Care Cooperatives will make this a reality by transforming the children’s social care system into one that is coherent, collaborative, and sustainable. 6.3 RCCs will harness the collective buying power of individual local authorities (LAs) and allow them to gain economies of scale. By pooling resources, improving forecasting, strengthening multi-agency collaboration, building expertise and capability and acting collectively as a single customer and provider, RCCs will transform care available for children. 6.4 In 2025, two RCC pathfinders were launched in Greater Manchester and the South- East. Ecorys UK have been commissioned to carry out an independent evaluation of the two pathfinders. The first report was published in 2025 and highlights the high potential of the RCC model. Learning from the pathfinders, the department now intends to accelerate the rollout of RCCs. 6.5 The department’s vision is for every LA to be part of an RCC. The department wants to work in partnership with local areas to drive forward the development of RCCs quickly. On 4 February 2026 the department publicly set out its vision for RCCs, building on the pathfinders. Following this, an Expression of Interest will be launched in Spring, backed by over £10 million of funding, with the expectation to be able to support the setup of up to six new RCCs in 2026.