Labour MP Jonathan Brash has told the Commons that Hartlepool Borough Council is ‘being slowly bankrupted’ by private children's social care providers engaging in ‘outrageous profiteering’.
Speaking in response to Bridget Phillipson's plans to cap the profits of children's social care firms, Mr Brash said the council’s four top private providers charge an average of £12,000 per week per child.
Cllr Rachel Creevy, chair of Hartlepool Borough Council's Children's Services Committee, said: 'Like many northern councils, Hartlepool is facing significant and sustained pressures on Children's Social Care, with private market costs being a major factor. Children's Social Care spend has increased from £23m in 2019/20 to £41m in 2023/24. We expect to spend close to £46m in 2024/25, representing a circa 100% increase in costs over five years. Whilst the Council is facing a number of cost and funding pressures, Children's Social Care spend is the biggest threat to the Council's financial sustainability and we welcome any government plans that may address this position, including any cap on profits.'
