Profiting from vulnerability: ‘Conflicted’ private firms take over children’s care

Private companies will begin profiting from the social care system for vulnerable children from today. November 12th sees regulations come into effect which allow the outsourcing of the provision of services for children in care to the private sector.
There has been limited scrutiny of the reforms, which the government had initially unsuccessfully attempted to push through via a legislative reform order.

“The regulations allow for a clear conflict of interest to arise, because the same private company will be allowed to place a child into care and run that placement,” shadow minister Lisa Nandy told MPs in the Commons last Thursday.

“This is, frankly, a disaster waiting to happen.”

The high stakes involved for the children affected was underlined yesterday by a report from Welsh charity Tros Gynnal Plant, which warned children moved from area to area face a higher risk of sexual exploitation.

Paedophile gangs have targeted children in care in places like Rochdale, Oxford and Derby.

But concerns remain that the care system is not functioning effectively, with a report at the weekend highlighting the rapid turnover of those in charge of care at a local government level.

One in three directors of children’s services have left their job in the last year, the Independent on Sunday newspaper reported.

Care services are also being affected by a £2.7 billion budget reduction.