Question to the Department for Education:

To ask the Secretary of State for Education, with reference to her Department's annual report and accounts for 2022/23, published in July 2023, what steps she is taking to mitigate the risk 4 on looked-after children placement market failure.

Local authorities have a duty to ensure there are enough places for their children in care. This year, councils have up to £59.7 billion available for their services, including children’s social care. This is a 9.4% increase in cash terms compared to 2022/23. As detailed in the department’s consolidated annual report, the department understands the current challenges in the looked after children placement market. The department is carrying out a number of actions to help mitigate the risks.

As set out in our strategy, Stable Homes, Built on Love, which was published on 2 February 2023, the department is providing £259 million of capital funding over the next parliament to help local government develop more of their own children’s homes. The department is also investing over £27 million over the next two years to deliver a fostering recruitment and retention programme to boost local authority fostering capacity.

Additionally, the department is also working with Ofsted and the sector to develop plans for a provider financial oversight regime to increase transparency and prevent sudden market exit.