Huge excess profits in UK children’s social care

Trinava director, Vivek Kotecha, worked with the Balanced Economy Project to calculate the excess (above normal) economic profits made by operators in children’s social care. Finding such a high, and persistent, level of excess profits indicates a lack of competitive pressure in the market.

“The UK’s Competition and Markets Authority (CMA) today has published its final report on Children’s Social Care. We have prepared a detailed analysis, which we also published today. Please see our report, and our accompanying Technical Note, and spreadsheet. We find that:

• The largest children’s care home companies made an average excessive profit of £ 22,000 per child per year from 2016-2020.

• In total, over £116m of excessive profits were made, on average, in children’s homes and in Independent Fostering Agencies each year from 2016-2020, or £584m over the 5 years. This is around a sixth of the average annual income received by the largest providers.

• The CMA has ducked its responsibilities to children, failing to recommend limits on leverage and profit-making.“

https://www.balancedeconomy.org/latest/huge-excess-profits-in-uk-childrens-social-care-new-report?