The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)

My Lords, before I turn to the amendments in the first group, I want to be clear, as many noble Lords have recognised, that the measures in Clause 10, together with those that we will come to later in Clauses 12 to 18, are part of an overarching, broad-ranging strategy to fix the market for placements for looked-after children. The review conducted by my honourable friend Josh MacAlister, which several noble Lords have quite rightly referenced, and the report from the Competition and Markets Authority were explicit that the placement market is dysfunctional and that some private providers are making excessive profits from placements for our most vulnerable children. We are now taking concerted action to address this, including through measures in the Bill, but also through a wide range of non-legislative measures, to deliver a broader range of providers in the market so that local authorities have more options when finding the right place for children in their care. These must be the right homes in the right parts of the country, so that children do not have to move miles from their communities and support networks, as many noble Lords have referenced in this debate. These homes must be delivered at a sustainable cost to the taxpayer by providers no longer making excessive profits. A failure to address the dysfunction in the system has led to many of the issues that noble Lords are rightly identifying today, which they hope and expect us to respond to—not only, I suspect, in these clauses relating to regional care co-operatives but more broadly in the action that we are taking to fix that dysfunctional market. Amendments 108 to 116 in the name of my noble friend Lady Longfield seek to amend the definition of local authorities’ strategic accommodation functions as defined by this clause to ensure that it meets the current and future needs of looked-after children. This and my noble friend’s contribution exactly get to the crux of the problems we are trying to solve here. She is correct, as I have already suggested, about the issues raised by the lack of sufficiency caused by the current placement market for children. Children being too far away from home; too big cost pressures; inappropriate placements: those are all things that this provision and the other elements of our strategy are aimed at addressing. Amendment 119ZA from the noble Baroness, Lady Barran, sets out the principles that local authorities that have formed a regional care co-operative, following a direction from the Secretary of State, would have to adhere to when commissioning accommodation for looked-after children. She is right that the provisions in this clause relate to the direction powers for the Secretary of State in circumstances either where local authorities have refused to take part in regional arrangements or perhaps where regional arrangements have been set up and local authorities might not have managed to be part of any of those arrangements. I certainly think it is already the case that authorities are trying to bring themselves together into regional arrangements, precisely to be able to solve some of the issues that we have outlined. The Government completely agree that there must be sufficient accommodation for all children who are looked after by their local authority and that in future this accommodation must meet their needs and provide appropriate support. It should allow them to live as close to home as possible, where that is in their interests. That is precisely the reason for trying to ensure that the market operates more effectively. But it is also the case that there are existing legal requirements on local authorities to the effect of some of the understandable calls that have been made in these amendments and by other noble Lords. Local authorities already have a general statutory duty under Section 22G of the Children Act 1989 to take such steps, as far as is reasonably practicable, to ensure that there is sufficient accommodation within their area to meet the needs of looked-after children. They are also under a duty, via Sections 22 and 22C of the same Act, to provide accommodation that meets the needs of looked-after children by ensuring it is consistent with the child’s welfare and has due consideration to the child’s age and understanding, as well as their wishes and feelings. Finally, they have a statutory duty under Section 22C(8)(a) and (9) of the 1989 Act to ensure they provide accommodation that allows children to live near their home, unless it is inconsistent with the child’s welfare or not reasonably practicable. Those duties will all remain. The problem is not that there is no legal recognition of these issues and the need for them to be taken into consideration in providing sufficient accommodation and placements for children. It is that the market has prevented local authorities being able to fulfil their statutory requirements. That is why regional care co-operatives, which in the legislation are called “regional co-operation arrangements”, will assist local authorities in meeting these duties, including by analysing what accommodation is needed for children across the region, publishing sufficiency strategies, recruiting and supporting foster parents and commissioning care places, as recommended by both the review conducted by Josh MacAlister and the report from the Competition and Markets Authority. They will support local authorities to carry out their strategic accommodation functions but, as I have suggested, these functions are not new and are already in law, including the duty to take steps, as reasonably practicable, to ensure sufficient accommodation for looked-after children. Any decision-making responsibility for where individual children are placed, however, will continue to rest with local authorities. Amendment 116A in the name of the noble Baroness, Lady Barran, would prevent the Secretary of State adding to a local authority’s strategic accommodation functions for regional care co-operatives. I would like to reassure the noble Baroness of the safeguards in place regarding the power to add to the list of strategic accommodation functions to be exercised through regional care co-operatives. I slightly lost track of whether she was accusing the Government of currently having a Henry VIII power within the legislation— I will go back and check.