Government announces £53 million for council-run children’s homes

Children’s Minister Janet Daby announced a new investment of £53 million to create 200 new placements at a speech in Manchester.

Speaking at the Association of Directors of Children’s Services (ADCS) Conference, said that the homes would be council-run and would specifically target children who have such complex needs that they are at risk of, or have been, deprived of their liberty.

The Government says the new homes will break down barriers to opportunity by providing support for these young people’s complex behaviour and mental health needs in ‘safe and stable environments’.

“The children’s social care system has faced years of drift and neglect, leading to a vicious cycle of late intervention and children falling through the cracks.”

Recent data shows a lack of placements available to meet the complex needs of vulnerable people, with some being placed in unregistered and sometimes unsuitable accommodation costing more than £1m per year.

“One of the worst symptoms of this is when some of the most vulnerable young people in society are shunted from pillar to post - traumatised by shameful illegal homes, while some private companies rack up ludicrous profits,” Minister Daby said.

Data from the Children’s Commissioner found that councils are spending an estimated £440 million a year on unregistered placements. Over 30 of these placements were costing over £1 million each, with private providers making huge profits.

One teenager with both SEND and mental health needs told the commissioner they had been living in a caravan for two months, at a cost of £75,000, out of her council area.

Children’s Commissioner Dame Rachel de Souza said that too many children who need care who have instead ended up in ‘illegal and terrible’ accommodation.

“Instead of receiving care and support, they are side-lined, ignored and left waiting while services fail to take responsibility for these children.

“This funding, and the social care provisions of the Children’s Wellbeing and Schools Bill, is an opportunity to bring that to an end. It will increase the number of loving, safe homes for this group of children – whose needs are often urgent and complex – and must provide loving, therapeutic, joined-up care to help these children flourish.”

The Department for Education is now bringing together an expert ‘market intervention advisory group’, to work on financial oversight and transparency schemes to tackle profiteering, as well as look at how to bring in more voluntary providers.