Private equity profits from fostering as crisis engulfs children's care
Share:
One of the UK's biggest private fostering firms more than tripled its profits last year as it continued to cash in on the crisis in children's social care. Profit before tax at Compass Community Ltd, which is owned by private equity firm Cap10 Partners, soared to £10.8 million for the year to March 2024, up from £3 million the year before, according to recent accounts filed with Companies House. The firm's turnover surged to £139.7 million from £108.6 million the previous year.
Compass noted that the number of children in care was increasing, and as a result demand for its services had risen. It says it will invest its profits to grow its capacity to meet 'unmet demand' by recruiting more foster carers, as well as opening new homes and schools.
Alongside its foster care operation, Compass is one of Britain's largest providers of children's homes as well as schooling for young people with additional needs. Private fostering agencies make money by charging local councils for placing children in foster homes.
Concern: Compass noted that the number of children in care was increasing, and as a result demand for its services had risen. Industry sources say their fees are double or triple what the cost would be if councils were to make their own placements. Profit-making agencies are contracted by the state to recruit and train foster carers. These carers must undergo an assessment, a home visit and final checks from a fostering panel.
