From purchase to purpose

Independent fostering agencies (IFAs) now provide almost 50% of all fostering places in England. With this ongoing trend looking to continue, there’s a greater need than ever for local authorities to ensure that purchased services are meeting needs well and that the public purse is being spent wisely. NAFP is often asked by local authority colleagues “Where does it work well?” “What is a good example of an effective consortia or a good foster care contract?” The answer is that there simply isn’t one example. Not one consortia or contract gets it all right, but what we do see are pockets of some brilliant commissioning and procurement practice across the UK. If these individual elements of best practice could be brought together in one place, this could really support local authorities and providers to develop arrangements that meet intended objectives.

But in thinking about how services could be better commissioned and procured, there’s a need to acknowledge the new legislation around this. On 24 February 2025, the new Procurement Act went live, introducing new rules for local authorities when purchasing goods and services. But what will the implications be for the fostering sector?

Well, for starters, there’s a new central digital platform which should prevent the need for providers to scour around for tenders. This platform should save time by consolidating opportunities in one place, reducing administrative burdens for all. While there is some skepticism amongst IFAs about its implementation, the platform, if successful, should be a significant step forward in streamlining procurement.

Over the past two decades, around 100 framework contracts and dynamic purchasing systems have been developed to procure foster care services across the UK. These contracts vary widely in their specifications, terms and conditions, monitoring requirements and governance arrangements. Having had some involvement in many of these contracts over these years, I am in no doubt that some have fostered strong collaboration, while others have not. A fostering contract which meets its objective and delivers value is one which prioritises children’s best interests by enabling trust, sharing risk and investing in long-term partnerships between authorities and providers. Given that some children may spend most of their childhood in a single IFA foster placement, sustaining positive relationships is critical. This requires partners to develop fair, clear, and mutually agreeable contract terms.The risk however is that the new procurement act does not provide a mandate for enhanced consultation. Local authority commissioners and fostering providers will have to work even harder, in these stretched and pressurised times, to allocate the necessary time and resources for meaningful dialogue. Having early access to information about what works well will only be beneficial for these conversations.

The Procurement Act seeks to improve transparency, simplicity, competition, flexibility, and value for money. However the use of ‘competition’ should not be a primary concern in foster care procurement. To deliver effective services and secure value for money, decisions have to be guided by the needs and voices of children and those who know them best. As we have witnessed in previous years, the application of competition in procurement exercises (for example the application of tiers) can push child-centered decision-making to the side. This in turn leads to needs not being met and subsequently we witness costs increasing. Ensuring there is robust and effective consultation and coproduced contracts will reduce this risk significantly. 

The impact of the new act remains to be seen. Through NAFP’s local authority and IFA partnership meetings, we will collectively monitor its effects and share learning. In the meantime, both local authorities and IFAs can take proactive steps:

• Invest in coproducing contract documents. The new act makes this more possible than ever and mutually agreed terms from the offset will provide a greater chance of harmony. 

• Invest in developing positive and trusting long term relationships with one another. 

• Collaborate to agree on a definition of ‘value for money’ specific to foster care. Reach a mutual agreement as to how it will be measured, making sure that it’s based on long term spend and outcomes, and not on a weekly cost and a ‘point in time’ quality measurement.

• Ensure that those responsible for supporting partnerships and for ensuring effective contract management have the necessary know-how and the social skills to build and forge the trusting relationships that are needed.

While the Procurement Act supports relational commissioning, time and resource constraints will persist. To move beyond firefighting, local authorities and IFAs will need to focus on building trust and support each other in embracing the opportunities the act presents.