The market for children in care in England has become a lucrative and unregulated industry, with private providers charging the state an average of £384,020 per child per year, six times the cost of Eton. Some providers levy over £1 million, and in complex cases, more than £3 million.
The Scale of Profiteering
A Financial Times investigation reveals that children are being traded like commodities, with private equity firms exchanging them for vast sums. The average charge has skyrocketed, and the system is rife with unqualified and unregistered providers.
Unregulated Homes and Criminal Links
Plumbers, hairdressers, and Airbnb landlords are opening children's homes with no experience. There are concerns about links to organized crime, as gangs can harvest state money and exploit vulnerable young people. Some homes are unregistered, operating illegally and often in deprived areas where property is cheap.
Children are being moved far from their home areas, increasing vulnerability to exploitation. A study in Child Abuse & Neglect links profit-making to placements outside local authority areas and more frequent moves, causing disruption and instability.
Illegal Placements and Abuse
An LBC and Bureau of Investigative Journalism investigation found that in one illegal home, care workers with criminal records sexually assaulted a 15-year-old girl. The Children's commissioner estimates 669 young people are in unregistered placements, but the real figure is likely higher.
Ideology Driving the Crisis
While France has only 5% for-profit care, England has 84%. This stems from neoliberal ideology that favors privatization. The government has failed to provide capital for local authorities to house children themselves, leading to a worse service at a higher cost.
Wales has stopped new profit-making in this sector, but England only seeks to tweak the system. Private profit and public service are incompatible, especially for vulnerable children.
The government blames a shortage of foster carers, but children's homes are essential. Public ownership of public services works better and costs less, as seen with water, energy, and railways. There is no place for a market in children.
