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Private providers 'profiteering' as Suffolk struggles with children's care costs

Suffolk County Council is being forced into expensive private sector care packages costing up to £25,000 per week due to a shortage of foster carers and council-run children's homes, with the authority's executive director warning of "huge profiteering" by some organisations.

Endeavour House in Ipswich
Oliver Rouane-WilliamsIpswich.co.uk
Endeavour House in Ipswich

Why it matters: The council is predicted to spend £8.2 million over and above its budget for children's services, initially set at £113 million in February, as pressure on services builds.

The big picture: The authority is experiencing growing demand for children's services alongside children with increasingly complex needs, in line with national trends. Meanwhile, low numbers of foster carers and its own children's homes are forcing the council into the private sector with expensive, bespoke packages.

Sarah-Jane Smedmor, the service's executive director, said: "There's huge profiteering that's going on by some of the organisations in this space. That doesn't mean children don't get good outcomes, but we don't have selection and we have to go with what's on offer."

The details: One child, who came to the council after being exposed to domestic violence, drug use and sexual abuse, requires a private package of around £15,000 per week, although some can go up to as much as £25,000.

Some of these packages could be in place for several years and are meant to help children recover from trauma, as well as deal with additional learning needs and mental health challenges.

"All of our children who come into our care don't come into it through any fault of their own; they come into our care through circumstance," Ms Smedmor said. "We are working with children who already experienced trauma and disadvantage, and we need to make sure that doesn't continue. The cost is of concern, but we have to make sure that we have the right places to care for our children."

By the numbers: A report published in 2022 by the Competition and Market's Authority (CMA) concluded both the prices and profits of the largest providers were much higher than they should be.

The county council has a statutory duty to look after the children who need it, with 943 under its care — of these, 130 are in residential homes, the vast majority of which are private placements.

What they're saying: Cllr Bobby Bennett, the authority's lead for children's services, said the council would continue to push for family-based and foster care.

Where this is not possible, the council will continue to bid for government money and try to expand its own stock of children's homes to drive the price tag down.

She said: "What we need to keep doing is evaluating the needs of the children who are coming to us and making sure that we're building the right space for them. The more of those we have, where we can control the spend and make sure nobody is profiteering from our young people, the better."

The bottom line: Suffolk County Council faces mounting financial pressure as it navigates what it says is a shortage of affordable care options for vulnerable children, while striving to ensure those in its care receive appropriate support despite the high costs of private sector placements.

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