Concern over children’s care providers’ ‘debt-fuelled’ £215m profit

The six largest children’s social care providers in England made £215m in profit last year, as councils face mounting costs to support vulnerable children and families, a new report shows. The Local Government Association (LGA) commissioned report into the finances of social care providers found that some larger providers are achieving a profit of more than 20 per cent on their income. The LGA also says that many providers’ profit growth is being funded through private equity debt, which raises concerns around their viability and the long-term stability of placements for children. The largest 16 providers have a combined income of more than £1.37bn, finds the report, although some of this is from providing services outside the UK. Read more.