A report on the state of the children’s homes market has cautioned central and local government to ‘be mindful’ of the consequences of funding cuts.
The Independent Children’s Homes Association has published their State of the Sector 2019 report which shows that providers have low levels of confidence in the market.
While there has been a small increase in confidence, 59% said they were unsure about the market. This figure increases to 68% when it comes to small providers.
Just over half of providers report increased income, but a quarter report a decline. One third of small providers report an increased turnover and a further one third report a decline.
Reserves have also taken a hit. About one third of providers reported a deterioration of reserve levels, with smaller providers more likely to report declining reserves.
There are more providers reporting declining reserves than increasing reserves.
Around 9 out of 10 providers are investing in their existing services to maintain or enhance quality and outcomes, according to the ICHA’s report.
Jonathan Stanley, ICHA CEO Emeritus, warned that this is ‘a delicate moment for children’s homes.’
‘There is continued resilience of provider morale despite the many challenges of operating in the children’s homes sector. Do not mistake this as being more than a short and small recovery from the recent years,’ he said.
‘There is still much to be done to assure the healthy sustainability of children’s homes’ provision in England. The report shows that national and local government should be mindful of the consequences of seeking any reduction in spending on residential child care.
‘We do not need to trigger a crisis that could come from unplanned reactive spreadsheet actions. Providers want to work with local authorities to plan the way forwards.’
Responding to the report, the chair of the Local Government Association’s Children and Young People Board, Cllr Anntoinette Bramble, said: ‘Children’s homes play an important role in caring for some of the most vulnerable children in society at difficult times in their lives and councils have a key role in making this happen.
‘Councils want to work closely with providers to make sure that children receive all the care and support they need so they can prosper and succeed in life.
‘However, this report reaffirms the need for the Government to invest desperately-needed new funding into children’s services, which face a £3.1bn funding gap by 2025, in the forthcoming Spending Review.
‘We are absolutely clear that unless new funding is found, then these vital services, which keep children safe from harm and the worst abuses of society, will reach a tipping point.’