Issue - decisions

1.

Title of Item/Report

Foster with North East Expansion

2.

Record of the Decision

Consideration was given to a report on Foster with North East Expansion.

The purpose of the report was to seek Cabinet approval for the Council to take part in the expansion of the Regional Fostering Hub in line with the Department for Education (DfE) expansion programme.  This would build on the Foster with North East (FwNE) pathfinder that had been in operation since 2023 and all North East Councils were part of, but also required a move to an ‘End-to-End’ model encompassing all aspects of the Fostering process.

Children in Care sufficiency was the most significant risk and financial pressure to Councils across the North East and nationally.  Following the Independent Review of Children’s Social Care in 2022 national policy, supported by proposed legislation in the Children's Wellbeing and Schools Bill, had identified regional working as key to addressing these challenges.  The Competitions and Market Authority (CMA) had also reported that the current model was dysfunctional driving up costs and delivering poor outcomes.

DfE was progressing at pace on this agenda publishing a blueprint including regional fostering, Renewing Fostering: homes for 10,000 more children, in February 2026 and guidance on the next stage of development for Regional Care Co-operatives (RCCs) in March 2026 Apply to set up a regional care cooperative - GOV.UK along with an Expression of Interest (EoI) for six further regions to become RCC’s.

Foster with North East (FwNE) was established in 2023 as the National Fostering Pathfinder, hosted by Together for Children and with all 12 councils in the region participating.   An evaluation of FwNE was carried out last year and it was recognised that expansion of the model to an End-to-End approach was essential to achieve the benefits of the regional approach.  It was positive that national policy and some additional funding had now aligned with that view.

DfE policy statement sets out seven minimum requirements for an expanded Regional Fostering Hub along with a specification and very tight timelines to establish and implement the model.   A fully costed plan needed to be submitted to DfE by 1st June 2026.  The work undertaken in the region to develop the model, financial planning and implementation are set out in the body of this report.

DfE provided over £2m of funding to FwNE to establish it and for initial running costs, however in 2025-26 the current model was fully funded by the 12 LAs through a population-based formula.  In 2026-27 it’s projected that the model would cost approximately £2m with £500k of funding through government grant.  A commitment had been made that the financial contributions from individual LA’s would be maintained at 2025/26 levels, and the efficiencies would be sought to support the expansion of the Hub.  For context in 2023-24 the region spent £540m on children in care placements and costs continued to rise at an exponential rate.  Financial details were set out in the body of the report.

To ensure the benefits of regional working were fully realised and operated as efficiently as possible it was proposed that FwNE would be fully integrated into a proposed North East RCC.  It was recommended that a regional bid be submitted as part of the RCC EoI by May 22nd, building on extensive work that had taken place regionally over the last 18 months.  If successful it would bring at least £1.5m additional funding into the region and enable significant efficiency and benefits by integrating with FwNE.

A high-level structure for regional working through a proposed RCC and delivery of FwNE via a locality model was described in detail in the report.  Whilst it would be required to operate across a full regional footprint of all 12 LA’s our design is based on 3 Locality delivery teams taking the learning from FwNE pathfinder.   It was proposed that the 3 localities were:

•         North Locality – Gateshead, Newcastle, North Tyneside and Northumberland

•         Central Locality – Durham, South Tyneside and TfC/Sunderland

•         South Locality – Darlington, Hartlepool, Middlesborough, Redcar & Cleveland and Stockton-on-Tees.

The report presented a clear rationale for the recommendations and the move to regional arrangements to address chronic shortfalls in sufficiency of children in care placements.  The risks presented by the current dysfunctional market approach impacting on children’s outcomes and the financial sustainability of LA’s must be addressed and this work provided an opportunity to do so.

RESOLVED that:-

1. The Local Authority enter into an agreement to be part of the expanded North East Fostering Hub in line with national policy and guidance.

2. The Local Authority support a North East Regional bid to become a ‘Wave 2’ RCC national pathfinder and support submission of a bid to DfE by 22nd May 2026.

3. The Director of Children’s Services in conjunction with the Lead Member for Children’s Services be authorised to take all necessary steps to implement the recommendations in line with National Policy.

3.

Reasons for the Decision

Foster carers provide high quality care for some of our most vulnerable children and as such we highly value the part they play in making a difference to children’s lives. Our ambition is to be able to offer more children and young people high quality family-based care provided by our foster carers.  It is also important that we are able to maintain lifelong connections for our children with siblings, extended families and their wider community.  Enhancing our recruitment and retention of foster carers to reverse the decline in numbers seen in recent years is essential to achieving that.

There is also a financial imperative with rapidly escalating costs driven by a dysfunctional market model within the care system.  This has led to costs escalating well in advance of budgets creating substantial pressure and sustainability risks for Councils across the region and nationally.  A different approach is needed, and these developments give us the opportunity to completely redesign this critical service area with an enhanced regional approach that is still embedded in locality.

In July 2025, Cabinet considered a report outlining a sustained reduction in the number of local foster carers at a time of increasing demand for placements, driven by a growing cohort of children entering care. The report presented proposals to modernise the fostering service in Stockton-on-Tees, underpinned by a comprehensive service review, options appraisal and a supporting business case. The proposals sought to address pressures on placement sufficiency, including the increasing dependence on external private providers, while improving outcomes for children in care and supporting their long-term stability and wellbeing. A key priority within the proposals was to strengthen the capacity and resilience of the in-house fostering service through targeted recruitment activity, improved retention of existing carers and a more flexible and responsive service offer capable of meeting the increasingly complex and diverse needs of children in care. The proposals included increases to fostering fees, enhanced training and support arrangements and a focused recruitment strategy to broaden the local foster carer base.

The Council’s approved approach is consistent with the national policy direction and the Government’s ambition to strengthen the end-to-end system for the recruitment, retention and support of foster carers, ensuring sustainable placement sufficiency and improved outcomes for children.

The Directors of Children’s Services within 12 North East local authorities in scope for this activity have agreed to support this programme, and there is a national expectation to deliver the ‘End-to-End’ expansion.  On a national and regional level, recruiting sufficient numbers of foster carers for the number of children requiring care remains a challenge and this approach is designed to reduce the challenges faced.  The costs associated with using external fostering providers and children’s homes can be high and so it is hoped this will see a reduction.

4.

Alternative Options Considered and Rejected

None

5.

Declared (Cabinet Member) Conflicts of Interest

None

6.

Details of any Dispensations

None

7.

Date and Time by which Call In must be executed

Not applicable. This matter was subject to the Special Urgency procedure as the decision cannot reasonably be deferred and the requirements of the General Exception procedure cannot be met within the available timeframe.