Councils in England pay more than £ 1 million a year for a place in a private orphanage, with operators citing the cost of living crisis as the reason for rising prices, the Guardian has learned.
Private providers have been accused of making “indecent” profits from some of the most vulnerable children in society, as local authorities say they are quoted up to £ 50,000 a week (£ 2.6 million a year) per child. .
Children with complex needs – such as death threats, behavioral problems, autism spectrum disorders or danger to themselves or others – may need the supervision of specialist training or caregivers.
A local authority in the north-east told the Guardian that it was “very reluctant” to pay £ 18,500 a week (£ 962,000 a year) for one child, while the Liverpool council revealed it was paying £ 780,000 a year for a child in need of three caregivers. care.
A report from the Bournemouth, Christchurch and Poole Children’s Services Department, issued last week with a legal notice of improvement, said the placement of the most vulnerable children had reached £ 1.2 million a year for one child, “who may need a 4: 1 staff ratio (4 caregivers to 1 child) ”.
The Ministry of Justice claims that it costs 270,000 pounds a year to keep a child in the care of young people in a safe, state-run children’s home. These shelter children who have been convicted of the most serious crimes, including murder.
The West Midlands Council told the Association of Directors of Children’s Services (ADCS) that it was citing £ 25,000- £ 50,000 a week for a safe “wing” for a child with a custodial order. The child was considered a risk to others and was subject to Osman’s warning, which means police believe there is a credible threat to their lives, plus a security order and a care order.
Profit margins for the 15 largest private orphanage operators average 22.6%, according to the Competition and Markets Authority. The average price is £ 4,865 per week for local government accommodation and £ 4,153 for private accommodation, according to a review by the Personal Social Services Review Department. That’s up from about £ 3,000 in 2016, and prices are rising week by week, the council said, as suppliers cite food, petrol and energy costs.
The most expensive are accommodations with private providers, who say the high costs are dictated by the extreme needs of children.
Mark Kerr, Deputy Chief Executive Officer of the Independent Orphanage Association (ICHA), said: “Such high-level needs and risks require significant specialized care 24 hours a day to ensure that they are safe and their needs are met. satisfied. It is important to note that such levels of need are often the result of failing to invest in the right delivery at the right time.
The Guardian contacted more than 100 local authorities in England to ask how much their most expensive children’s home cost. Of those who responded, many said they had at least one child whose care cost £ 10,000 a week or more, with providers further increasing their prices in recent weeks and blaming the crisis on the cost of living.
Medway in Kent said it had 12 children in accommodation, costing more than £ 10,000 a week for the past five years. He spent £ 13,700 a week for nine months on several different private places for a young man who needed three to one support, with staff working at night. All staff had to be trained for detention and the young man was placed on a warrant.
Halton in Merseyside said she had paid £ 12,115 a week for short-term crisis accommodation required for a 13-year-old girl with special needs following a “fire incident”. Children with a history of arson are particularly difficult to accommodate, and providers do not accept such a difficult request from local authorities.
“You have suppliers who look at portraits of 30 children with a pen and decide who is the easiest, who will cause the least disturbance in the home, who has the least care, no history of arson or provocative behavior… Suppliers are looking for the easiest young people to take home for maximum profit, “said Julie Jenkins, director of children’s services at Calderdale in West Yorkshire.
Steve Reddy, Liverpool’s director of children’s services, said the council spends £ 15,000 a week (£ 780,000 a year) on a place for a child to be supervised by three carers. The child has Autism Spectrum Disorder (ASD), Attention Deficit Hyperactivity Disorder (ADHD) and self-harm, which leads to repeated hospitalizations.
Reddy said he had recently turned down an offer from an operator who cited £ 30,000 a week. “Some of the profits made are downright indecent,” he said.
Steve Crocker, president of ADCS, said: “Meeting the needs of children, not maximizing profits, should always be a priority. A comprehensive national housing strategy is needed to ensure that the right homes are available in the right places.
“ADCS has previously called for legislation that prevents profit-making operations or at least limits the level of fees due for reception and housing services. Although it will take time to achieve this, ADCS is committed to moving towards a non-profit model. “
A spokesman for the Ministry of Education said: “All children and young people deserve to grow up in stable, loving homes and no private company should exploit those who need accommodation.
“We have commissioned an independent review of child welfare, which will aim to radically reform the system, and we are working hard to raise standards for childcare as it goes on.”
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