CMA children’s social care market study

NAFP welcomes today’s Competition and Markets Authority (CMA) final report from their children’s social care market study. The topics covered have generated significant interest and this report represents an important contribution to the ongoing debate about how best we can meet the needs of children in care across England, Scotland and Wales. 

NAFP works daily with both independent fostering agencies (IFA) and local authority commissioners. We agree with the CMA’s analysis that finds a ‘fragmented system by which services are commissioned, which means that local authorities are not able to leverage their role as the purchasers of placements or to plan properly for the future’. We have worked tirelessly to support local authorities to develop more effective commissioning and many have responded positively. But this is not yet widespread, and commissioning remains an area of some inefficiency based on often weak evidence.

We also agree with the CMA that there are many difficulties in making direct comparisons in the cost of providing foster care between local authority directly delivered (‘in-house’) services and IFAs. Not least, in the CMA’s words, because ‘meeting more complex needs is likely to involve higher costs, for example in terms of greater or more specialised staffing in children’s homes or more expensive support of foster carers’ and 'our analysis of the cost data suggests that the leading factor is higher allowances paid to foster carers'. It is surprising therefore, that the CMA also states that ‘there is indicative evidence that local authorities could provide some placements more cheaply than by purchasing them from IFAs’.  The fact that this evidence is ‘indicative’ demonstrates this has yet to be shown to actually be the case. We would welcome sight of this indicative evidence to explore it further. Indeed, the CMA themselves state ‘from the evidence we have seen is not clear that local authorities would be able to recruit the required number of foster carers themselves, nor that they would be able to provide the same quality of care at a similar price, across the full range of care needs and in every area.’

The CMA’s conclusion that independent fostering agency fees have been consistent since 2016, despite rising inflation, and therefore represent a real term fall in prices, mirrors our own research.

IFAs overwhelmingly receive excellent inspection judgements (93% good or outstanding with Ofsted), local authorities do not receive any such independent regulatory quality judgement. We are unclear, therefore, how the CMA have evidenced the relative quality of services in this regard.

On the registration of new IFAs and registered managers with Ofsted in England, we also welcome the delays highlighted by the CMA. We have been urging Ofsted to address this issue for some time.

NAFP is working closely with government in Wales on plans for a new vision of children’s social care. We acknowledge the CMA findings for Welsh Government that they ‘do not recommend that they take direct action to limit or ban profit-making in foster care. From the evidence we have seen is not clear that local authorities would be able to recruit the required number of foster carers themselves, nor that they would be able to provide the same quality of care at a similar price, across the full range of care needs and in every area.’

CMA children's social care market study, final report, 10 March 2022