Companies profiteering over children's care - Hampshire boss claims

Stuart Ashley gave evidence to the select committee via videolink

Some private social care providers are "profiteering" from the most vulnerable, Hampshire's head of children's services has said.

Hampshire County Council's Stuart Ashley, was speaking at the House of Commons education select committee.

He told MPs there should be a cap on profits made by private providers of children's care facilities.

Conservative committee member Nick Fletcher said managing supply and demand should be the priority.

Mr Ashley said the costs of placements for vulnerable children had grown "exponentially".

So-called looked after children are those who live with foster carers or in residential settings like children's homes, schools and secure units.

They have often been removed from their parents after being assessed as being "at risk of harm".

"There has been a significant increases in spend - all driven by demand," Mr Ashley told MPs.

The committee heard there had been a sharp rise in the costs of care placements

He said it was often necessary to send children out of the county in order to provide them with a place.

"The provider knows there are no other available beds so they can charge more or less what they like.

"A child might be discharged from hospital and still present a very high risk and so we are left searching for a bed. And this is replicated in local authorities up and down the country.

"These are the most vulnerable children in our society which we are collectively responsible for, and on a personal note, I don't agree with any profit associated with this at all," he added.

Mr Fletcher said he thought it was important businesses made profit or they may not operate in the field.

"When you cap profits you can create further issues. We need to always look at the supply and demand, that's the way to work through this," he added.

In the financial year 2018/9 Hampshire County Council spent £142m on children's social care - in the current year it will spend nearly £264m.

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