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The UK government is introducing measures designed to prevent excessive profits being made by companies that operate children’s homes. A limit on profitability will be imposed if providers of residential care for vulnerable children fail to voluntarily regulate themselves, but the details of the measure are yet to be announced. A network of smaller firms that offer unregistered or unregulated services may fall outside the provisions.
The government’s new proposals will also give regulator Ofsted increased powers to investigate and fine companies that offer inadequate or “exploitative” children’s care services. The measures come against a background of rising demand for council-run children’s services, with costs spiralling and many providers charging “extraordinary prices” for unregulated care homes.
Alongside the measures relating to profits, the government is introducing legislation to require major residential care providers to share their finances with official regulators. The move aims to ensure the sector’s transparency, as well as to prevent those providers from collapsing into administration and leaving children homeless.
The government’s proposals come in response to a series of recommendations from a panel reviewing allegations of abuse at children’s homes in Doncaster. The plans are part of major reforms planned for the children’s social care system, which includes strengthening the rights of families to contribute to decisions about taking their children into care
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