Agenda item

1.

Title of Item/Report

Powering our Future - Transformation Review Children in our Care

2.

Record of the Decision

Consideration was given to a report that presented a proposal for modernising the fostering service in Stockton-on-Tees following a comprehensive review, options appraisal and development of a business case. The objective was to address the declining number of foster carers and the increasing number of children in external private provider care, to support better outcomes for children in care, and help give them the best start in life. The proposal aimed to build sufficiency within the mainstream fostering service by encouraging new foster carers, retaining existing ones, and meeting the diverse needs of children in care.

Proposals in the report were an important part of the approach to reduce inequality by prioritising Early Help and Prevention, supporting more children to live within safe and inclusive communities.

The Council’s Mission Statement and wider Powering Our Future Programme, prioritised Early Help and prevention, supporting more children to live in safe and inclusive communities that provide them with opportunities to thrive. This means working differently with communities, to harness the strengths that exist to build resilience and independence.  

In April 2024, Cabinet agreed to a review of Children in our Care as part of phase 1 of the Transformation Programme. This provided clarity on the scope and objectives for the review, in alignment with the Council’s Mission Statement.

The review had led to a comprehensive understanding of challenges making use of research, data and intelligence. Findings and drivers for change along with options and proposals were summarised as follows:-

 - Stockton-on-Tees Borough Council faces challenges with a high number of children in care (564 as at 10.04.25) and a reducing number of in-house fostering households (81 as at 10.04.25), This has led to a reliance on Independent Fostering Agencies (IFAs) and external residential care, which are costly and often place children outside the borough.

 - The costs associated with using external providers are extremely high compared to mainstream fostering. Additionally, the lack of local placements means social workers must travel long distances to visit children, increasing workloads and reducing the frequency of contact. External providers often serve short notice on placements, causing instability and escalating children's needs, which leads to a cycle of increasingly complex needs and higher costs.

 - Due to the shortage of foster placements, emergency placements sometimes result in unregulated care arrangements, which are unlawful and require additional risk management. This practice has brought scrutiny from Ofsted, the Department for Education, and the Children's Commissioner, highlighting the urgent need for more regulated foster care options.

 - As of 10th April 2025, 69% of the 564 children in care were in foster care placements, with 104 children placed with SBC Foster Carers, 102 with Independent Fostering Agencies (IFA’s) and 183 with Connected Carers. The remaining 173 children were in residential care, regulated supported accommodation or other placements.

- The number of mainstream foster carers has steadily decreased since 2019, with 70 leaving the service and only 40 approved to replace them. The main reasons for resignations include retirement, ill health, and foster carers entering paid employment.

 - The current profile of in-house foster carers is insufficient, with difficulties in recruiting individuals who can develop the requisite skills to care for children with complex needs. Our payments to foster carers are lower than those offered by neighbouring Councils and IFAs, leading some carers to seek paid employment, reducing their availability. The proposal suggests introducing a new fee structure to encourage foster carers to improve their skills and care for children with more complex needs, making our offer more competitive.

 - Recent national, regional and local research by Newton Europe validates the need for additional fostering placements, especially for children with complex needs. The average weekly cost for residential care has increased significantly between 2020 and 2024 from £4,000 per week to £6,000 per week, while external fostering costs increased by 20%. The proportion of children in residential care has risen, and there is a notable increase in children entering care aged 10 and older. Most children currently in residential care were previously supported in fostering, indicating a need for more suitable foster carers.

- The findings of the review and appraisal of options highlight the urgent need for modernising the fostering service to address the declining number of foster carers, high costs, placement instability, and the need for enhanced support and training.

Several options were appraised as detailed below:

Option 1: Do Nothing

This option involves continuing without investment therefore risks fewer carers, higher costs, unstable placements, and poorer outcomes for children

Option 2: Modernise the Current Fee Structure and Support Package (Recommended Option)

This option proposes introducing a new, tiered fee structure for foster carers, particularly those caring for children with complex needs. It includes an enhanced support package with additional training (e.g., DDP), a new Mockingbird constellation, therapeutic services via CAMHS, and an extra social worker to support increased demand. It also introduces an annual appreciation fee. This option is expected to improve recruitment and retention, reduce reliance on external providers, and has the potential to generate savings. The annual cost of the proposal will depend upon the actual number of new foster carers recruited and the needs of the children. Financial modelling has been undertaken and the estimated additional cost based on current numbers is £770,000 per annum.

Option 3: Align with a Neighbouring Local Authority’s Fee Structure

Similar to Option 2, this option involves modernising the fee structure and support offer but aligns specifically with the higher rates offered by an outstanding neighbouring authority. It includes the same support enhancements as Option 2 but requires a larger investment (£1.6 million per annum). While it offers a competitive package, the higher cost makes it less financially favourable than Option 2.

Option 4: Partnership with an Independent Fostering Agency (IFA)

This option explored forming a strategic partnership with an IFA to leverage their expertise in recruitment, training, and support. While it could bring in specialist knowledge and resources, it presents significant risks, including potential legal challenges, loss of control over placement quality, and complications with existing foster carers and staff. It also raises concerns about long-term sustainability and alignment with the council’s values and goals.

The options were evaluated based on their potential to address the key issues, financial implications, and overall impact on the fostering service and outcomes for children. Option 2: To modernise the current fee structure and support package is recommended as the proposed option due to its balanced approach to investment, support, and expected savings for the following reasons:

•         An improved package of fees for all carers that moves us closer to the fees paid by NE Local Authorities. This will encourage our current cohort of foster carers to remain with the council and attract new foster carers to the service.

•         More children will be supported in family-based care that meets their needs.

•         Offers a competitive fee for either existing or new carers to foster children with complex needs providing two higher fee rates than is currently available. To offset the introduction of these new fees, the council intends to undertake intensive recruitment campaigns to target new foster carers through the profiling of individual children to ensure long term matches are achieved based on their needs.

•         The introduction of an appreciation fee, paid on an annual basis, will reinforce the council’s commitment to its current and future cohorts of foster carers. Knowing they are valued and respected for their commitment to children in our care will help to retain existing and future foster carers.

•         Provides a comprehensive package of support. Whilst our current cohort of foster carers rate the support and training offered by the council highly (foster carer consultation feedback), the complexity of needs of some children in care are challenging and can risk placements breaking down without having recourse to a proficient level of support. The introduction of an additional Mockingbird constellation, therapeutic responses from CAMHS and the opportunity to access DDP training with residential care staff will help build resilience of foster carers to enable them to conduct their fostering role.

•         An additional social worker post will provide capacity within the team to address the expected increase in the number of referrals, applications, and approvals for new foster carers.

•         Whilst the introduction of these new measures to recruit and retain foster carers will require investment, this will be offset through savings made from the re-unification of children from external residential and from IFA placements back into mainstream foster care. The financial savings associated with this reduction on expensive external placements is estimated to be £2.5 million per annum by year 4. It will also achieve better outcomes for those children who are currently in residential care despite their permanence plans identifying that the most appropriate placement to meet their needs is in a fostering placement. Further savings should also be achievable through cost avoidance of future placements, where children are supported in in-house fostering rather than external placements, modelling has indicated this could be a further £990,000 by year 4.

RESOLVED with regard to Annexe 1 of the report

To exclude the press and public from the meeting pursuant to section 100A(4) of the Local Government Act 1972 during the consideration of Annexe 1 to the report due to the likelihood that if members of the public were present during that item there would be disclosure to them of exempt information and

The information is exempt information because it is information relating to the financial or business affairs of any particular person (including the authority holding that information) under Paragraph 3 of Part One of Schedule 12A of the Local Government Act 1972 and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

As no member wished to discuss Annexe 1 the public were not excluded from the meeting.

RESOLVED that:-

1. A New Fee Structure be introduced for Foster Carers: The proposed new fee structure for foster carers includes four levels ranging from £100 per week to £450 per week for carers providing care for children with the most complex needs. This structure aims to make our offer more competitive, attract new foster carers, and retain existing ones by recognising and rewarding the varying levels of care required. The maximum current fee a foster carer can receive is £125 per week. The new fee structure will be implemented from September 2025.

In addition, the introduction of an annual appreciation fee to recognise and reward foster carers for their commitment and efforts. This is subject to a successful annual review and the completion of a minimum of three training courses. The fee is set at £500 per household, aiming to show appreciation and encourage continuous professional development among foster carers. The new annual appreciation fee will be implemented from September 2025.

2. An Enhanced Package of Training and Support be introduced: Provide a wider training offer, including Dyadic Developmental Psychotherapy (DDP) training, establish an additional Mockingbird constellation to support foster carers, commission therapeutic services from the Child and Adolescent Mental Health Service (CAMHS) and increase capacity within the fostering team by appointing an additional social worker. The enhanced package of support will commence from October 2025, in a staged process.

3. Targeted Recruitment Campaigns take place: Conduct intensive marketing campaigns to recruit specialist foster carers for children with complex needs and profile individual children to ensure long-term matches based on their needs. Campaigns will commence in September 2025.

4. The Reunification of Children takes place: Reunify children from external residential and Independent Fostering Agency (IFA) placements back into mainstream foster care. The process of matching children with long term foster carers will begin once specialist foster carers have been identified to meet their needs.

3.

Reasons for the Decision

Cabinet is recommended to note the findings and agree the recommendations to ensure that the Council continues to deliver its commitment to the Powering Our Future Missions; to address the financial challenges we face at the same time as improving outcomes for communities. These include:

•         Early Help – keeping children safe in families and communities, preventing demand for other services

•         Empowering communities - increasing individual, family and community level activities

•         Improved Outcomes: Keeping children within the local area supports their identity, community ties, and educational stability.

•         Cost Efficiency: Modernising the fee structure and providing enhanced support to foster carers will reduce reliance on expensive external providers.

•         Enhanced Support: Providing training and therapeutic services will help foster carers manage complex needs and reduce placement breakdowns.

4.

Alternative Options Considered and Rejected

None

5.

Declared (Cabinet Member) Conflicts of Interest

Councillor Pauline Beall declared an Other Registerable Interest with regard to agenda item 12 - Powering our Future - Transformation Review Children in our Care as she was a member of the Fostering Panel. Councillor Pauline Beall withdrew from the meeting and left the room during consideration of the item.

Councillor Tony Riordan declared a Non Registerable Interest with regard to agenda item 12 - Powering our Future - Transformation Review Children in our Care as he had a family member who was a foster carer. Councillor Tony Riordan withdrew from the meeting and left the room during consideration of the item.

6.

Details of any Dispensations

None

7.

Date and Time by which Call In must be executed

Midnight, Friday, 25 July 2025