Fixing the children’s social care market: Recommendations melissa.ittoo Thu, 30/04/2026 - 14:26 28 Report chapter Amber Dellar Institute for Government Yes Public services Social care Education and skills Local government Public sector Public spending Labour Starmer government Department for Education No Many children live in placements that do not meet their needs. The government’s reforms are promising, but rely on more joined-up public services. There is a profound mismatch between the supply of care placements for children and demand for them. As a result, some children go without appropriate care, quality varies sharply by postcode and the system has become financially unsustainable. With limited power to shape the market, councils must contend with some providers opening in unsuitable areas, delivering unlawful care that councils feel they have limited choice but to use, and setting excessive prices. But local authorities could do more to close the gap, by: developing better forecasting capabilityinvesting in preventionproviding foster carers with a more comprehensive support offerinvesting more in their own provision. These actions require upfront (and, in most cases, ongoing) investment, which is incredibly difficult for councils to scrape together, given the deep cuts made to their funding since 2010. The government’s children’s social care reforms, 4 Department for Education, Keeping Children Safe, Helping Families Thrive, CP 1200, The Stationery Office, 2024, https://assets.publishing.service.gov.uk/media/67375fe5ed0fc07b53499a42/Keeping_Children_Safe_Helping_Families_Thrive_.pdf announced at the end of 2024 and informed by recommendations from the CMA and the Independent Review of Children’s Social Care, 5 Competition and Markets Authority, Children’s Social Care Market Study: Final report, GOV.UK, 2022, https://assets.publishing.service.gov.uk/media/6228726cd3bf7f158c844f65/Final_report.pdf; MacAlister J, The Independent Review of Children’s Social Care