Foster carers working directly with the council are receiving extra cash to help as the cost of living rises, councillors were told this week.
Officials told councillors that those foster carers tended to received more than those who had signed up with an independent foster agency although they gave no figures for comparison.
Brighton and Hove City Council has been trying to increase the proportion of foster carers who work directly with the council and reduce its reliance on independent agencies.
Six months ago, in March, 66 children were in placements arranged by agencies – or 30 per cent of the total – while 155 children (70 per cent) were in placements arranged by the council.
This compares with 109 agency placements in March 2009 – or 38 per cent at the time – while 178 children (62 per cent) were placed directly by the council.
A senior official said that agency placements cost more money but carers received less because the agencies took a cut towards their overheads and their profits.
The council had a £3.2 million budget for foster care placements with independent agencies. It did not give a figure for the aggregate cost of direct placements.
The council said that it preferred to place more children directly, rather than through agencies, not only to save money but because it believed that direct placements tended to be better for the children and their foster carers.
At a meeting of the council’s Children, Young People and Skills Committee on Monday (12 September), officials said that they had been working with East Sussex County Council to manage agency costs.
The meeting, at Brighton Town Hall, said that this involved a shared “procurement framework” – with a list of trusted independent agencies and a deal on fees.
Officials wanted to stick with the arrangement for the coming four years, starting from next April, with the option of an extra two years, making six in total.
The meeting was told that agency placements were costing the council an average of £826 a week which is split between the agency and the foster carers. Specialist placements, using agencies not on the framework, could cost up to £949 a week.
No figure was given for the average cost of direct placements and the council did not respond to a request for this information.
One of the council’s most senior officials, Deb Austin, said: “There is an element of profit in that money (paid to agencies). While it does cover all of the costs, the majority of independent fostering agencies make a profit.
“There are very few that are not for profit – and that is a bit of a bone of contention. Some are owned by large hedge funds and are making a significant amount of profit.
“Wherever possible, we want to place our children (directly) with Brighton and Hove carers.”
Labour councillor Amanda Grimshaw asked about the effects of the increase in the cost of living on foster families, with food, water and heating bills all going up.
She was told that fees for “in-house” carers had gone up 5 per cent – and that when some foster carers ended up switching from an agency to the council, they were surprised to learn that they would be paid more.
Councillor Grimshaw asked if it was possible to encourage more people to foster through the council rather than “profit-driven” agencies.
The council said that it was trying to recruit directly when possible, not least because those placements tended to be in or much closer to Brighton and Hove.
The committee was told that some foster carers had signed up with an agency in response to an agency’s advertising campaign but had believed that they were dealing directly with the council before finding out otherwise.
Councillors unanimously agreed to continue working with East Sussex County Council for four more years, with an option to extend for a further two years.
Update …
The council said : “The average allowance payment for foster carers in Brighton and Hove is £448 per week. This is calculated on the age of the child and the length of a carer’s service.
“Foster carer allowances are in two parts. There is a fee element and a care element that reflects the cost of caring for a child.
“There have been two increases in these allowances this financial year. An annual rise in April 2022 and an additional 5 per cent uplift in July.”
More information can be found on the council’s website and there is also information about becoming a foster carer in Brighton and Hove at www.fosteringinbrightonandhove.org.uk.
