7
Accepted
Local authority discretion in children's social care; national support rollout awaits Ministerial decisions.
Conclusion
The Department told us that local authorities have a lot of discretion to make decisions impacting children’s social care provision. It described how, for example, some local authorities provided foster carers with capital grants to convert and increase the space available in their homes, while some local authorities informally cooperated on a regional basis.10 The Department has started providing more support to local authorities on forecasting, commissioning and market shaping but has not yet rolled out this support nationally.11 We asked when it would provide local authorities with further encouragement and direction, given the systematic and fundamental nature of the challenges. It told us that it was awaiting Ministerial decisions.12
Government Response Summary
The government agrees with the committee's implicit recommendation, rolling out Regional Care Co-operatives (RCCs) with over £10 million funding to support their setup by 2026. They are also removing barriers for providers and supported updated Ofsted registration criteria in September 2025.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Local authorities (LAs) have statutory duties for care planning and providing appropriate placements for looked after children. The Department for Education recognises that there are several challenges in the children's social care placements market, including differing sufficiency challenges across England. The department is rolling out Regional Care Co-operatives (RCCs) which will harness the collective buying power of individual LAs and allow them to gain economies of scale. RCCs will be responsible for analysing future accommodation needs for looked after children across the region, publishing sufficiency strategies, recruiting and supporting foster parents, and commissioning care places. The department is taking steps to remove the barriers that make it harder for providers, including LAs, to establish provision where it is needed. In September 2025 the department supported Ofsted to update their registration prioritisation criteria, enabling Ofsted to prioritise applications for homes needed to meet identified sufficiency gaps and those providing specialist care. The department’s vision is for every LA to be part of an RCC, accelerating their rollout and providing over £10 million of funding to support the setup of up to six new RCCs in 2026.
Source
Committee
Public Accounts Committee
Report
61st Report - Financial sustainability of children’s care homes
16 Jan 2026
HC 1233
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.5 yr
Report published
16 Jan 2026