Councils join forces to cut fostering costs

Currently, the 11 councils have around 650 looked-after children placed with approximately 50 different fostering agencies at a total cost of £29m per year.

Under the partnership, which is called the Independent Fostering Agency, the 11 local authorities will purchase specialist placements in bulk.

Initial estimates of savings for the participating authorities range from three per cent to more than seven per cent, with Southampton City Council anticipating a saving of £160,000 in the first year of the partnership alone.

A total of 27 providers will offer independent fostering placements to the 11 local authorities across the south-central region under the new arrangements. Providers are required to have an Ofsted rating of good or better to be in the running to submit a tender to the partnership.

Jeremy Moulton, the council’s cabinet member for children’s services, said the new arrangements would improve outcomes for looked-after children and make savings for council-tax payers.

"Southampton has an outstanding in-house foster care service and a dedicated team of in-house foster carers, who make a real difference to the lives of some of the city’s most vulnerable children and young people," he said. "But there are cases when we need to make use of the specialist placements offered by independent fostering agencies.

"These new arrangements will help to ensure that we are able to offer the children in our care the best chance of fulfilling their potential by ensuring a greater choice of local placements, greater placement stability and robust contract management to maintain quality."