Select committee: Education Committee

Conclusion 26

4th Report - Children’s social care Published 10 Jul 2025 Addressed to Department for Education
Conclusion (the committee's words)
The Department for Education must set out how it will assess whether a profit cap on children’s social care providers is necessary. If the Department decides to introduce a profit cap, it must consult this Committee on the draft regulations before they are laid before Parliament. (Recommendation, Paragraph 61) The care system

From: Education Committee, 4th Report - Children’s social care (HC 430), 10 July 2025

Government response

The government responded to the whole report on 17 October 2025 (deadline 10 September 2025).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government says its reform programme, backed by investment of "over £2 billion", addresses many of the Committee's concerns, and accepts some recommendations while declining others such as a national sufficiency strategy.

  • On out-of-area placements and sufficiency, it does "not believe a national sufficiency strategy would be responsive enough" to local needs, and says national reporting of reasons for out-of-area placements would be "costly" to local authorities.
  • On a profit cap, it would consider one "only if" other measures are not successful, and "can commit to consulting specifically with the Committee" as part of the process.
  • On kinship care, it does not currently plan to extend Pupil Premium Plus or admissions priority, citing "limited evidence", but is exploring collecting data through the school census.
  • On a national register of foster carers, it is "considering the potential costs and benefits" and will engage stakeholders to "determine next steps".

Read the government's response ↗ Report an error