Overhaul of children's social care will crack down on profiteering

Excessive profiteering by unscrupulous private companies charging sky-high fees for sub-standard placements for vulnerable children will face a clampdown as part of a major overhaul of children's social care in England.

- Sally Weale

The government will today outline a package of reforms that it promises will end years of "drift and neglect" in the children's social care system, with an emphasis on early intervention.

Billed as "the biggest overhaul in a generation", the reforms include new powers for Ofsted to issue civil fines to providers, which the government hopes will be more effective in deterring unscrupulous behaviour.

Amid growing concern about the vast profits being made by private companies at the expense of councils now facing bankruptcy, there will also be a legal requirement for private providers to open up their finances to government to allow greater scrutiny.

If they do not voluntarily put an end to profiteering, the government says it will introduce a "backstop" law to limit the profit that providers can make.

Bridget Phillipson, the education secretary, said: "Our care system has suffered from years of drift and neglect. It's bankrupting councils, letting families down, and above all, leaving too many children feeling forgotten, powerless and invisible."

The reforms, which are likely to form part of the forthcoming children's wellbeing bill, were welcomed by the sector, though concerns remain about underfunding and a continuing workforce crisis.