Ellie Ames 30 October 2023

Biggest children’s care providers make £300m profit

Biggest children’s care providers make £300m profit image
Image: Da Antipina / Shutterstock.com

The largest independent providers of children’s social care brought in profits of more than £300m last year, a report has found.

The report, produced by Revolution Consulting and commissioned by the Local Government Association (LGA), found that council spending on privately run children’s homes has more than doubled in the past six years.

In 2021-22, local authorities in England spent £1.5bn on independently-run residential children’s care, an 11% increase on the previous year and a 105% increase since 2015-16.

Last year, the aggregate fee income of 19 of the 20 largest independent providers, with CareTech excluded, was £1.63bn.

Of this income, 19% – a total of £310m – was recorded as profit.

The chair of the LGA’s children and young people board, Louise Gittins, said: ‘It is wrong that some providers are making excessive profit from providing these homes when money should be spent on children.’

She added: ‘Decreasing visibility of financial information makes it increasingly difficult to understand the financial health of these organisations that are largely funded by public money.

The LGA called for greater financial oversight of the largest independent providers.

The £37,000 SEND Problem image

The £37,000 SEND Problem

Natalie Kenneison, COO at Imosphere, argues that the real SEND funding crisis isn’t just about budgets - it’s about the systems behind the decisions.
SIGN UP
For your free daily news bulletin
Highways jobs

Lecturer in SEND

Durham County Council
Grade 9 £34,314 - £37,938 p.a. PAY AWARD PENDING
DurhamLearn wish to recruit a Lecturer in SEND – delivering Employment and Work Skills training in the classroom; applicants will have significant tea Durham
Recuriter: Durham County Council

Business Analyst, Selby

North Yorkshire Council
£37,035 - £45,718 per annum
Are you passionate about making public services more effective and efficient? Selby, North Yorkshire
Recuriter: North Yorkshire Council

Recovery Support Worker (Career Grade)

Wakefield Council
£31,067.00 - £33,366.00 Grade 7, £34,314.00 - £37,035.00 Grade 8, Career Grade
Recovery Support Worker (Career Grade) Badsworth, Pontefract
Recuriter: Wakefield Council

Residential Worker (Foster Home) x 2

Wakefield Council
£15,533.50 - £16,683.00, Grade 7,
Residential Worker (Foster Home) x 2 Wakefield, West Yorkshire
Recuriter: Wakefield Council

Portage Home Visitor

Wakefield Council
£27,711.00 - £30,559.00, Grade 6
Portage Home Visitor Normanton, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner