The government is planning to allow outsourcing firms to bid for contracts to manage social services for vulnerable children in England – while dropping laws allowing the removal of companies that fail to do the job properly.
Concerns have emerged after two of the biggest outsourcing companies in Britain, Serco and G4S, were found to have overbilled the taxpayer by charging to tag offenders who were dead or in prison.
Lisa Nandy, the shadow children's minister, said the latest plans would leave some of Britain's most vulnerable children at the mercy of an unregulated private sector. She has written to the regulatory reform committee, which is considering a draft legislative reform order, urging it to reject the government's plans.
Critics say the changes could also remove accountability through independent inspection and allow potential conflict of interest between private companies' primary duties to their shareholders and their responsibility to children.
Labour claims that the government's proposals leave a potential conflict of interest because the same company would be able to award placements, monitor them and run them.The blog, `Family Justice Exposed` gives a breakdown of the profits of Core Assets Group Limited which is the largest fostering company in the UK. HERE