Source · Select Committees · Education Committee
Recommendation 21
21
Accepted
Children's social care market is failing due to excessive profits and provider financial risk.
Conclusion
The children’s social care market is not delivering for children or for local authorities. We are particularly concerned at the reports of excessive profits being made by some providers and the risk of financial failure among large providers. We hope that the reforms set out in the Children’s Wellbeing and Schools Bill will address this and expect the Department for Education to provide regular updates on progress. (Conclusion, Paragraph 56)
Government Response Summary
The government accepts the committee's conclusion, outlining actions to address market failures, including giving Ofsted greater powers, establishing accountability mechanisms for providers, strengthening financial oversight, and committing to cap profits if profiteering continues.
Government Response
Accepted
HM Government
Accepted
The Committee concluded that the children’s social care market is not currently delivering for children or local authorities. We are taking action to address this, including giving Ofsted greater powers to tackle unregistered provision, establishing a mechanism to hold groups of providers to account for improvement, and strengthening the financial oversight of providers. And if our actions do not address profiteering behaviour from some providers, we will not hesitate to cap their profits.