Source · Select Committees · Education Committee
Recommendation 22
22
Accepted
Proposed social care profit cap lacks parliamentary scrutiny and transparency.
Conclusion
The proposed profit cap has the potential to be a useful tool for the Department if needed, but we do not think it is acceptable for the Department to introduce this significant intervention in the market with 85 only limited opportunities for parliamentary scrutiny and no transparency around how and when the Department will decide if it is necessary to trigger the cap. (Conclusion, Paragraph 57)
Government Response Summary
The government addresses concerns about scrutiny and transparency of the profit cap, stating it would be introduced via secondary legislation and transparency regulations, both subject to parliamentary scrutiny, and notes a technical consultation on the powers has been published.
Government Response
Accepted
HM Government
Accepted
The Government is committed to tackling profiteering and ensuring value for money in the children’s social care market. That is why the Children’s Wellbeing and Schools Bill includes a power to introduce a profit cap for providers of children’s social care. The power to cap profits would be introduced through secondary legislation, which would be subject to parliamentary scrutiny. The Bill also allows for future transparency regulations to be made relating to financial data from children’s social care providers. These regulations would also be subject to parliamentary scrutiny. The Government published a technical consultation on these powers on 19 December 2024, inviting views on potential thresholds, the scope of the cap, and the information required to implement it. We will consider all feedback received before proceeding with any specific proposals. This measured approach ensures that any intervention is evidence-based, proportionate, and subject to appropriate scrutiny.