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Introduction to the Privatisation of U.K. Foster Care and Children's Homes

Austerity has been anthemic to the privatisation of the foster care system in the United Kingdom. Children's social care should solely prioritise the wellbeing and future of vulnerable children, not profit. About 80 percent of children’s homes are reported to be privately-owned and mostly run for profit. Foster care is following this trend, with private agencies now providing homes for one in every three children living with a foster family. Previously, the outgoing Children’s Commissioner Anne Longfield asserted that the heavy dependency on private companies to provide child care created a system which was becoming increasingly fragmented, irrational and uncoordinated.

The outsourcing and privatisation of foster and residential child care has meant that local authorities, councils and the government have lost control over many aspects of the care system including quality, cost and location of places children are meant to feel a sense of security and to some degree feel like a placement is their home.

Increasingly, many local authorities have no residential children's homes of their own and consequently are forced to move children away from their families and other important community links they may have. The most vulnerable children in the fragmented system are falling through the gaps and becoming victims of criminal behaviour, sexual exploitation and other atrocities that they should never be forced to face in the first place. 

The private sector runs 65% of children’s residential homes and two out of three biggest foster placement providers in the United Kingdom are run by private equity firms. The British Government tried in 2014 to extend the ability of councils to further contract and privatise children's services but were forced to back down due to campaigning.

28% of all privately owned children's homes in the UK fall below ofsted ratings of “good”. 63 children's homes in the UK fall into being classified as inadequate. Despite these inadequacies and failing to care for societies most vulnerable children the government has piloted the idea of complete privatisation and removal of regulations in 6 parts of the country. The results of the pilot highlighted how unprepared the contracted out companies were to provide children in care adequate and consistent care which they require. Furthermore, it failed to prove any benefit to the debate on saving the public any money at all. 

Government austerity measures and subsequent cuts to social sectors have put inordinate stress upon local councils resulting in the outsourcing of children's services in exchange for short term financial solutions. In the long term however this will be detrimental to the social child care sector. The Personal Social Services Research Unit revealed in 2015 that privately owned children’s homes charged local authorities upwards of £4000 per week per placement. Despite a quarter of privatised children’s homes not providing adequate levels of care, privately run homes still receive a disproportionately large amount of funding. The higher costs of privately run children’s homes is worrying as it further encourages the placement of children’s homes to be driven by property prices not the needs of vulnerable children in care.  Already over a quarter of children’s homes are located in the North West compared to just 6% of homes being in London, despite the capital having the largest and youngest population in the country. This means children in care being moved further away from friends, family, and caseworkers as councils and companies try to cut costs. 

In conclusion, privatisation is detrimental to the future of vulnerable children and the taxpayers wallet. Better structures need to be implemented in order to avoid an overstretched outsourced system.



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