Care profits policy leads to bigger bill

A POLICY to restrict profits in children's care in Wales has backfired, allowing remaining providers to double their costs, a committee has heard.

- CHRIS HAINES

Jake Berriman, leader of Powys council, warned an “unforeseen” consequence has left councils with no choice but to cough up because other providers have fled the sector.

In February, the Senedd passed a law aimed at “eliminating” private profit - with looked-after children only cared for by the public sector, charitable or not-for-profit organisations in future.

Cllr Berriman said the Welsh Government’s move has seen private providers leave the sector and others have simply doubled their costs.

“We have to pay because there is no choice within the market,” he warned. “I think they are making hay while it is there to be made and the sun is shining.”

Giving evidence on the Welsh draft budget to the Senedd’s local government committee, councils pointed to the increasing demand and complexity of social care.

Jane Gebbie, the deputy leader of Bridgend council, said: “We've got one placement for one young person across Wales at the minute, that’s £20,000 per week - that is excessive.”

Mary Ann Brocklesby, the Labour leader of Monmouthshire council, added: “We'd all like to say that’s unusual - it’s not, it’s becoming standard.