Fostering Fees - Down to a price? Haringey first to set a maximum fostering fee

Haringey have taken what may be a unique step in their tendering process for Independent Fostering (IFA) Beds. They have specified the maximum price they will pay per bed, with some variation for challenging children and young people.

(Published in Community Care)

Previously, local authorities have concentrated on encouraging a range of provision at various costs and specifications to provide choice and diversity for the kids they have to place, often working in partnership with local providers to encourage provision to meet a local need. A key element has been to give a level of funding that enables ‘wrap around’ services to be provided to placements and so achieve stability and strong outcomes, something IFAs would say they do well. A one size fits all approach has not been seen as desirable.

 This move by Haringey has caused a great deal of concern in the fostering world. Some IFAs I have spoken to fear that if agencies accept the fees offered they could be in financial jeopardy or be forced to cut quality; either action could compromise the outcomes for Haringey children in placement. The previously very good relationship Haringey had with i

ts IFA providers has been somewhat clouded by this latest move I was told. Some are wondering why, given Haringey’s recent increase in funding, the borough would want to take such a controversial cost cutting position?

 This sort of commissioning down to a price has echoes of what has happened when home care services for older people are commissioned mainly on cost. A Panorama Special programme last April highlighted how this sort of process in one borough achieved the lowest possible price but with a real loss of quality as a result. The IFAs I have spoken to do not want to see the history of home care repeating itself in services for children and young people.

 Ian Dixon, Chair of the London IFA Forum has written to Haringey to express the group’s concern.  He told me that agencies with ‘outstanding’ OFSTED reports may well not be able to offer placements at the fees Haringey are specifying and he and his members worry greatly about the effect this would have on the children and young people placed. He told me “this process feels more like procurement than commissioning”. He has written to Haringey asking for a meeting to discuss changes to the process which might help working together for better outcomes and is hoping for a positive response.

The Fostering Network is aware of this issue and they too have concerns. Robert Tapsfield, chief executive said:

“It’s always a worry when local authorities fix costs that may lead to a loss in quality of the service provided. However, what is most important is that local authorities and Government keep a very careful eye on the overall impact of such changes. More children need to be placed locally, stability must be improved, and local authorities must be unrelenting in their efforts to improve educational outcomes for looked-after children. In commissioning placements, whether in-house or with other fostering providers, local authorities must ensure they are getting the very best possible service for children in their care – their responsibility as corporate parents demands that they provide for looked-after children as they would their own children.”

For the Government,   

A DCSF spokesperson said: “It is down to local authorities to commission services that meet the needs of looked after children in the most efficient and effective way.  That includes making sure those services have the capability and capacity to meet the needs of local communities into the future. Key to this is developing and supporting a sustainable market of providers, alongside a workforce capable of meeting those needs. Local authorities and their key partners are best placed to make decisions about commissioning local and regional services to meet the needs of their communities. But we know that local commissioners can require help and that is why we sponsored the Commissioning Support Programme. The Programme is working with commissioners in every Children's Trust partnership, helping to creating a step change in commissioning practice.”

There is some cynicism amongst some front line staff and Foster Carers in IFAs that when cuts need to be made, Local Authorities are tempted to shunt them onto carers and non-unionised independent sector workforces as a quick and easy option.