My Lords, I spoke to this issue at Second Reading. It is an important question to clarify, and I am very grateful to noble Lords for the chance to return to it so that I can be crystal clear. We are not seeking in this Bill to revisit the established position on profit-making. That is not our intention. There has, of course, been a mixed market in children’s social care for many years, and local authority children’s services regularly work with private and third sector organisations—for example in the provision of foster care and residential care. The Children and Young Persons Act 2008 allowed local authorities to take this relationship further by contracting with these partners for the full discharge of their functions relating to looked-after children and young people.
Noble Lords will remember debating regulations in 2014 to widen the range of functions that a local authority could delegate in this manner to cover other children’s social care functions, notably child protection. The Children and Young Persons Act 2008 (Relevant Care Functions) (England) Regulations 2014 explicitly ruled out profit-making from this wider set of functions. Nothing is more important than the safety and well-being of children, and we are committed to supporting professionals in finding new and more effective approaches to improving outcomes for the vulnerable young people in their care. In recent years that has involved promoting new models of delivery, but we have absolutely no intention of revisiting the position on profit-making settled by Parliament two years ago. I reassure noble Lords that any change to the 2014 regulations would need to be by the affirmative route.
As the noble Lord, Lord Watson, said, we will revisit the innovation clauses next week, but I will say again now that we have no intention of using Clause 15 to allow the existing position to be circumvented. In our conversations with local authorities, there has been no discussion of using Clause 15 to allow profit-making. This is not what we are seeking to do with that clause. I think noble Lords were reassured when we showed them the examples of innovations and they understood a bit more what this was all about. I hope that further examples will help clarify the position.
The noble Lord, Lord Warner, referred to the depressing situation in Birmingham. He slightly lost me on the concept of profit, because obviously organisations such as charities or local authorities are often trying to generate a surplus in order to reinvest. I do not think it is very helpful in this debate to wander into that, but I hope that when we give further examples of how the clause on innovation will be used, noble Lords will be reassured.