Agenda item

To update the committee at the 6-monthly stage.

Jane Rodgers introduced the report and answered the members’ questions with Scott Hereford and Cabinet Member Ian Chandler.

Members’ Questions:

The Committee undertook thorough scrutiny of the report, highlighting the following important issues for the Cabinet Member’s consideration:

·        The report at section 3.5 mentions significant changes to the for-profit provider market introduced about 18 months to two years ago. How have these changes destabilised the market and increased placement costs? What do the increased costs look like, and how are they related to the committee's concerns flagged two years ago about excluding for-profit providers?

The market for residential children's homes and placements is complex, making it difficult to determine cause and effect. Even before the Welsh government's policy changes, there were already indications of placement shortages and high competitiveness, with both Welsh and English children in Welsh placements. The market has become more competitive and destabilised further, coinciding with the policy changes and local authority developments. Despite this, there remains a high demand for for-profit private placements. The costs have risen significantly, with average weekly costs increasing from around £5,000 per child a couple of years ago to around £9,000-£10,000 per child now.

·        Given the increase in costs from £5,000 to £9,000 per week over two years, which is a significant rise in a short period, how have you managed your budgets to cope with these unanticipated changes?

The strategy involves safely reducing the number of children requiring placements, recruiting and retaining sufficient in-house foster placements, and developing their own placements. Despite these efforts, managing high-cost placements remains difficult. The challenges are shared by all local authority children's services in Wales. The strategy emphasises increasing in-house foster placements, noting that residential placements involve a small number of children compared to fostering.

·        Do we have any further sense of which providers will stay, convert, or exit the market following the new legislation?

It is too early to predict which providers will stay, convert, or exit the market, as many are keeping their business plans confidential. Efforts are being made to engage with providers to understand the situation better.

·        What alternative strategies are being considered for sourcing suitable properties in the north of the county, including potential cross-border provision?

Developing and sharing placements with other regions and local authorities is being considered, though it is complicated. Mechanisms for exchanging placements and ensuring no voids are being discussed at regional levels.

·        What are the contingencies if we cannot secure further grant money for placements?

The business cases for placements have been made considering scenarios with and without capital grants. Even without grants, there is a strong business case for accessing borrowing through the Council.

·        Are there any lessons learned from the success of Caldicot that can inform the development in Monmouth?

The success of Caldicot is noted, and lessons learned include the importance of engaging with local residents and ensuring smooth transitions for young people. Specific operational details and staffing structures are being reviewed to inform future developments.

·        Regarding the delays in Monmouth due to structural work, have we checked with the initial surveyor to see if there were any oversights that could be addressed commercially?

The issue of structural work delays in Monmouth is acknowledged, and it is suggested that any potential oversights by the initial surveyor should be addressed to mitigate costs.

·        Do you think transitioning to non-profit care will save money, given the significant costs of providing care?

The business cases presented to the cabinet have demonstrated the potential for cost savings through non-profit care. The focus is on providing high-quality placements in a cost-effective manner, without the need to generate profit.

·        How is the non-profit angle working with cross-border collaborations, especially with areas like Gloucestershire, Herefordshire, and Bristol?

Cross-border collaborations are complex due to registration requirements, but efforts are being made to share placements regionally and improve mechanisms for regional cooperation.

·        How are you monitoring and keeping control of the impact on young people, particularly care leavers, during this transition period?

The impact on young people is managed through close engagement, honest communication, and support during transitions. Social workers are trained to handle uncertainties and ensure that young people are well-supported throughout the process.

·        Are we able to measure the success of the placements beyond occupancy and cost metrics, such as educational attainment and transition to independence?

Success is measured through various criteria, including stability in placements, readiness for independent living, and direct feedback from children and young people. External evaluations by CIW also play a role.

·        Do we have many children currently in profit placements, and how will we transition them to non-profit placements in time for Welsh Government deadlines?

The number of children in profit placements is significant, especially in independent fostering agencies. Transition plans are in place for each child to ensure compliance with future non-profit rules.

·        What plans are in place to ensure that third-party providers used for supported accommodation will comply with future non-profit only rules?

Compliance with non-profit rules will be ensured through legal requirements for both placement and provider registration, monitored by CIW and Welsh Government.

·        Are we seeing any uptick in fostering to reduce the number of children in care?

There has been a net increase in fostering households, and efforts continue to recruit more in-house foster carers, which is crucial for reducing the number of children in care.

·        Do you think transitioning to non-profit providers will save money?

The business cases presented to the cabinet for each project have demonstrated the capacity to save money. Over time, the financial impact will be more evident, but the primary focus is on providing quality placements for children and young people.

·        How are we monitoring and keeping control of how the transition period is affecting the young people we are here to provide care for?

Monitoring the impact on young people involves evaluating placement stability, planned versus unplanned ends, and direct feedback from the children themselves. Additionally, external evaluations by CIW will provide an independent overview of placement effectiveness.

Chair’s Conclusion:

The Chair thanked the officers and Cabinet Member for the report and their responses to the committee’s questions and wished the team every success in implementing the new strategy.