The UK government has unveiled the most significant reforms to children’s social care in a generation, aiming to end years of systemic neglect and prioritize early intervention to support vulnerable families. The new measures, introduced in Parliament today, promise to tackle profiteering by care providers, improve care quality, and empower social workers to deliver better outcomes for children.

Key Reforms to Address System Failures

Education Secretary Bridget Phillipson said the current system is “bankrupting councils, letting families down, and leaving too many children feeling forgotten.” Among the major reforms are:

• Crackdown on Exploitative Providers: Ofsted will receive new powers to issue civil fines to providers offering substandard care or operating unregistered homes. Key providers will be required to disclose their finances to prevent profiteering, and the government plans to introduce a profit cap if the industry fails to regulate itself.
• Transparency and Financial Oversight: With local government spending on looked-after children doubling in the last decade, the reforms aim to challenge excessive profits, with over 1,500 children currently in placements costing over £500,000 annually.
• Support for Non-Profit Providers: The government is encouraging not-for-profit organizations and socially-invested providers to set up children’s homes, reducing reliance on profit-driven care.
• Early Intervention Focus: Families will gain a legal right to be involved in decisions about their children entering the care system. Additional funding for preventative services will be detailed in the upcoming Local Government Finance Settlement.

Support for Care Leavers and Safeguarding

Other measures include:

• Expanding the Staying Close programme, offering care leavers practical and emotional support until the age of 21.
• Requiring all councils to establish multi-agency child safeguarding teams to prevent children from falling through the cracks.
• Introducing a consistent child identifier to improve information sharing among professionals.

Additionally, parents with children under child protection enquiries or plans will require local authority consent to home-educate their children, ensuring proper oversight.

Tackling Abuse and Poor Practices

The reforms include new powers for Ofsted to investigate companies running multiple homes, addressing failures highlighted by the Hesley Group abuse scandal. The government is also prioritizing child safety by ensuring children are placed in homes that meet high-quality care standards.

Sector Support for the Reforms

The reforms have been welcomed by key figures in social care and safeguarding:

• Cllr Arooj Shah, Chair of the Local Government Association’s Children and Young People Board, praised the focus on early intervention and tackling profiteering but highlighted the need for additional funding and workforce support.
• Children’s Commissioner Dame Rachel de Souza emphasized the urgency of action, stating, “Children in the social care system today are living week to week in limbo. They need action without delay.”
• Sir Martyn Oliver, Ofsted’s Chief Inspector, welcomed the enhanced powers to ensure all children’s homes are safe and nurturing.

A Long-Awaited Transformation

The reforms follow the Independent Review of Children’s Social Care and address widespread concerns about the market’s shortcomings, including a shortage of appropriate placements and the prioritization of profit over care.

Sarah Cardell, CEO of the Competition and Markets Authority, said the changes are essential to ensure vulnerable children and young people receive the homes they need.

A Commitment to Change

Bridget Phillipson summarized the government’s vision: “We will crack down on care providers making excessive profit, tackle unregistered and unsafe provision, and ensure earlier intervention to keep families together and help children to thrive.”

With these reforms, the government aims to provide a more stable, transparent, and supportive environment for vulnerable children and their families, ensuring that every child has the opportunity to thrive.