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The Welsh Government has recently announced a programme containing a number of commitments setting out the vision for children’s services in Wales. One principle is to prevent private providers from being able to draw profits from providing care for children and young people – a move which might be more harmful than helpful.
As it stands, companies that currently provide care in Wales have requested an urgent need for detailed guidance and support from the Welsh Government if they are to be persuaded to make the move to a not-for-profit model. Local Authorities – who will have a crucial role if the policy is enacted – will need a clear commitment on funding for at least the next five years to prevent a catastrophic collapse of the system.
A recent BBC article outlined the scale of children’s residential support being delivered in Wales – there are about 7,210 children who are in the care of Welsh councils – a rise of 26% since 2014. Last year, 116 per 10,000 children were in care in Wales compared with 71 per 10,000 in England. The cost of residential care has risen to £200m this year, from £65m in 2017-18, and is forecast to rise to almost £1bn is nothing is changed, perhaps driving the Welsh government’s interest in introducing legislation preventing the private sector from profiting.
In conversations with senior leaders in the immediate aftermath of the announcement, Compass Associates’ Children’s Care team has observed an alarming trend in private providers looking to move across the border, directly owing to the proposed changes by the Senedd’s Health and Social Care Committee. This is likely to increase costs and cases for Local Authorities as private providers look to relocate elsewhere; potentially putting care receivers at risk of lengthier delays for the care they need.
There is more information expected to be debated and announced before final legislation is enforced, so it will remain to be seen as to whether an “exodus” by private children’s care providers will take place in Wales. Fundamentally, the services want to continue treating young children with respect, provide continuity through secure, consistent care provision, and to ensure children are looked after by people who care for them as one of their own. The potential changes pose a severe risk in ensuring this continues.
