The government is launching a major reform of the children’s social care system, described as the most significant in a generation. The aim is to address years of neglect and underinvestment, which have led to rising costs and poor care for vulnerable children. Spending on looked-after children has skyrocketed from £3.1 billion in 2009/10 to £7 billion in 2022/23, partly due to private care providers charging high fees while delivering subpar services.

Tackling Exploitative Care Providers

A key part of the reform is tackling private care providers that make excessive profits while failing to provide proper care. Ofsted will gain new powers to fine care providers that don’t meet standards, making it easier to crack down on unsafe homes. The government will also require large care providers to share financial information to ensure transparency and curb profiteering. If they don’t limit profits voluntarily, a new law will be introduced to cap them.

Focus on Early Intervention and Family-Cantered Care

The reform prioritises early intervention to keep families together and reduce the need for children to enter care. Families will have a legal right to be involved in decisions about their children's care, helping to prevent crises before they escalate. The government is also investing in preventative services to create a more sustainable care system.

Encouraging Not-for-Profit Providers

The government is encouraging not-for-profit providers and those backed by social investment to offer children’s care placements. This is aimed at reducing reliance on large private providers and ensuring that children are placed in safe, supportive environments.

The Rural Services Network’s Role

The Rural Services Network (RSN) will closely analyse how these reforms impact rural councils, where challenges such as lower population density and fewer resources can make delivering children’s services even more difficult. While the RSN welcomes these reforms as a necessary step forward for children’s social care, we recognise that rural councils will need additional support to effectively implement these changes.

The government’s focus on early intervention, financial transparency, and improving care standards is encouraging, but councils, particularly in rural areas, may face unique challenges in adapting to these new requirements. Rural councils often operate with smaller budgets and a more limited workforce, which can make it harder to introduce and manage these reforms. The RSN is committed to advocating for the resources and support that rural councils need to ensure these reforms are successfully implemented in all parts of the country.

Support from Key Figures

The reform has been welcomed by many experts, including Cllr Arooj Shah of the Local Government Association, who praised the focus on early intervention and tackling profiteering. However, she stressed that sufficient funding and resources are essential for success. Children’s Commissioner Dame Rachel de Souza emphasised the need for urgent reform to protect children from unsafe care and ensure they grow up in safe environments.

Looking Ahead

While the proposed reforms are a significant step forward, challenges remain, especially around funding and workforce capacity. The government will announce additional funding plans in the coming weeks, continuing the effort to transform the care system into one that prioritises children’s well-being.

Read the announcement in full HERE.