Source · Select Committees · Public Accounts Committee

Recommendation 29

29 Acknowledged

Full regional commissioning model remains untested, raising concerns over scope and accountability.

Conclusion
The Department has not confirmed how it will test the full commissioning model, and stakeholders have highlighted the scale of change and the need for a strong evidence base.80 The Children’s Homes Association told us that it was unclear how regional care co-operatives would address barriers relating to property prices, planning permission and the workforce.81 We received written evidence from Ofsted that it is disappointed not to have been given the power to inspect regional care cooperatives and is concerned that current proposals will leave gaps in oversight.82 The Children’s Commissioner told us that regional arrangements need to be much more ambitious rather than merely asking local authorities to “play nicely together, contribute a bit of money and share intelligence”.83 The Children’s Commissioner suggested a need for joint funding pots and shared accountability among local authorities, health, justice and education.84 Local authorities have previously raised concerns about the impact of regional commissioning on their statutory responsibilities, particularly around the risk of a local authority not finding a suitable place for a child.85 80 C&AG’s Report, para 3.12 81 Q 14 82 Ofsted (CCH0004) 83 Q 14 84 Q 14 85 C&AG’s Report, para 3.12 18
Government Response Summary
The Committee noted concerns about testing the commissioning model and highlighted barriers related to property prices, planning permission and the workforce. 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.