"Private providers of child social care in England will be pushed out of the system if they are found to be profiteering, the children's minister has said. Josh MacAlister, who is in charge of overhauling the care system for children, also called for a fostering equivalent of the Homes for Ukraine scheme to provide homes for tens of thousands of children."
"He added: There might be some [private] providers in that mix who are on board and those that aren't will be pushed out of the system. Ministers are carrying out an urgent review of the financial security of private providers of child social care, and are homing in on profit-gouging in the sector warning they will implement a profit cap if profiteering is identified at private providers."
"An oversight mechanism that will be in place within months would reduce the risk of a repeat of the Southern Cross scandal, which saw the collapse of a major private equity backed UK care home provider in 2011 after a rapid and unsustainable expansion, MacAlister said. Landmark legislation to eliminate private profit from children's social care services in Wales come into force in April last year, while in Scotland the government is trying to limit for-profit operators."
Josh MacAlister intends to remove private child social care providers found to be profiteering and has called for a fostering scheme similar to Homes for Ukraine to house tens of thousands of children. The government aims to recruit 10,000 new foster carers to rebalance care away from private providers and to secure lifelong, loving relationships for children. Ministers are urgently reviewing the financial security of private providers and may impose a profit cap where profiteering is identified. An oversight mechanism will be introduced within months to reduce repeat risks like the Southern Cross collapse. Wales and Scotland are limiting private profit while over 80% of English residential homes are for-profit.
Read at www.theguardian.com
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