The recent independent review into children’s social care offered some bold proposals for reform. But Richard Harbord argues that the review is ‘aspirational’, with the main funding proposal – a windfall tax – unlikely to be accepted by government.
The final report of the Independent Review of Children’s Social Care was published in May 2022. It promised a “once-in-a-generation opportunity to transform the children’s social care system and provide children with loving, safe and stable families”.
But can it help to deliver the transformation that is required? The odds are definitely not in its favour.
The appointment of Josh MacAlister to chair the review was controversial as many in children’s services had concerns that he was not independent from government. MacAlister is chief executive of a social care workers training charity that received a £1m government start-up grant. Many in the children’s care profession feel he is too close to the Department of Education and that there is a hidden agenda of privatising social care.
His review, however, is a comprehensive analysis that has taken 14 months to complete and involves a five-year “ambitious reform and investment programme”.
Dysfunctional care market
The report states that £2.6bn is needed over the first four years to fully implement the proposed reforms and that this would be partly funded by a windfall tax on the 15 largest residential children’s home and independent fostering providers. Those providers, it suggests, have made unusually high profits from a dysfunctional market. The windfall tax, at 20% on profits over the last five years, would be retrospective.
Government ministers have given an initial response welcoming the report. They wisely did not mention the windfall tax, suggesting that the report would provide a “roadmap” to help provide better services and support and that they would respond in detail in six months’ time.
The report anticipates a start in 2023/24 and the main changes in the period 2024-2027. This is an optimistic timescale and I suspect when the government’s detailed response comes at the end of the year, the roadmap may well have a much longer finishing date.
There are some concerning cost estimates in the report. It states that without reform the number of children in care will rise from 80,000 to 100,000 over the period to 2032 and, on the current system, that would cost an extra £5bn per year.
The report anticipates a start in 2023/24 and the main changes in 2024-2027. This is an optimistic timescale and when the government’s detailed response comes, the roadmap may well have a much longer finishing date.
Recruiting more foster carers
An extra 9,000 foster carers should be recruited over the next three years, it suggests. This is an area of under-performance at present. Evidence from Ofsted states that in 2020-21 160,635 expressions of interest were received from potential foster carers, but only 2,165 were ultimately approved.
The report states that potential foster carers are put off by the application process. Local authorities are understandably wary about taking short cuts and very aware of the fallout if they get it wrong.
The report recommends paying “kinship carers”, such as grandparents, aunts or uncles. Some children’s services do have a scheme but, because there are no formal training routes for these people, they tend to be paid less than foster carers.
The report also proposes a Care Standards Act to ensure that children receive comprehensive care until they reach the age of 18.
There is a proposal to merge “early help” and “child in need” support into a single definition of “family help” to end handovers between services. This would include family support workers, domestic abuse workers and mental health practitioners, with teams based in schools and family hubs.
The report is aspirational and it will be interesting to see the government’s response at the end of the year. I find it difficult to believe that a windfall tax be a runner.
Care co-operatives
Residential care and fostering would be run mandatorily by regional care co-operatives. Many children’s services already have such arrangements, but they are not statutory. Children would continue to be in the care of the local authority. At present, the guideline is to find care arrangements within 20 miles of the authority at the furthest.
In common with all such reports, it suggests that administration and bureaucracy are removed from social workers as far as possible and state-of-the-art care management systems put in place.
It urges government to deliver a new system in five years and that the secretary of state for education should hold other departments to account.
The difficulty is that there are other areas that need major investment, such as adult social care. The report is aspirational and it will be interesting to see the government’s response at the end of the year. The Local Government Association has called for a white paper within six months. I find it difficult to believe that a windfall tax on children’s service providers will be a runner.
At some point the whole finance system for local authorities must be reviewed including sources of local taxation. Making radical changes in one service area is simply not enough.
Richard Harbord is the former chief executive of Boston, Richmond and Hammersmith & Fulham councils.
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