Agenda item

The report sought authority to undertake a procurement exercise to commission Independent Fostering Agencies (IFA) placements for children looked after via Dynamic Purchasing System (DPS) ensuring compliance with the Public Contract Regulations 2015.

The Council had a statutory duty under Section 22G of the Children Act 1989 to provide sufficient local accommodation for looked after children. This required local authorities to take steps that secured, so far as reasonably practicable, sufficient accommodation within the authority’s area which met the needs of children that the local authority was looking after.

The Council currently spot purchases foster care provision from a range of IFAs due to insufficient capacity within in- house foster carers. Setting up the Council’s own Dynamic Purchasing System (DPS) would support in budling a long-term arrangement with providers, focusing on developing closer relationships.  This would assist Haringey in managing the market, controlling costs and working in partnership to increase the number of foster placements within the Borough to support children looked after. 

In 2023/2024, 123 children looked after were placed with IFAs and £5.8 million was spent on this provision. 

As of Feb 2025, 87 children looked after were placed in IFA placements 

In FY 2024/2025, £5.1 million was spent on independent fostering. 

A new DPS would be established and the estimated spend up to 4 years term was estimated at £22.5 million. This figure included an annual inflation of 4%. 

The new DPS would enable the Council to commission fostering placements for children and young people from IFAs until such time as the Procurement Act 2023 (Commencement and Transitional and Savings Arrangement Regulations 2024) permit, currently not being less than 4 years.

The Cabinet Member RESOLVED 

1.    To approve the estimated spend of up to £22.5 million on Independent Fostering Agencies over a period of 4 years via the DPS which is inclusive of annual inflation of 4%.

2.    To approve the commissioning fostering placements from Independent Fostering Agencies for Children looked after via the corporate DPS pursuant to Regulation 34 of the Public Contracts Regulations 2015. 

3.    Where contracts valued at £500,000 or more that require approval by the Cabinet Member as per Contract Standing Order (CSO) 9.07.1 d) or modified as per CSO 10.02.1 b) (variations and extensions to contracts of £500,000) or more; to delegate authority to the Director of Children’s Services in consultation with the Lead member for Children’s, Schools and families to award, vary or extend any individual call offs or block contract arrangements under the DPS to successful providers up to £1 million per award or any individual variation and extension.

Reasons for decision 

Services would be commissioned through Haringey’s DPS and be aligned to the procurement regulations, ensuring compliance and flexibility in developing the provider market. 

The Council had a statutory requirement to provide accommodation for children who were in its care and to improve outcomes and actively promote the life chances of children they look after. It was the responsibility of local authorities to act as the best possible parent for each child they looked after.

Haringey's Looked After Children’s Sufficiency 2022- 2026, as part of this strategy, the Council aimed to place the majority of looked after children in high-quality, cost effective, local, family-based placements. Commissioning Independent Fostering Agencies supported the Council in achieving this goal.

Alternative options considered

Do nothing: This option was discounted: The Council had a statutory duty under section 22G of the Children Act 1989 to take steps that secured sufficient accommodation within its area for children in their care. 

Doing nothing would mean continuing to spot purchasing without a framework in place which would mean a lack of purchasing control and the element of competition to drive cost efficiencies to secure better value for money.  This would not be compliant with procurement regulations.

Deliver in house: The Council already had its own in house fostering service and other arrangements such as kinship network. This would not meet the sufficiency requirements for all children looked after.