My noble friend makes an important point. She is absolutely right that we are seeing profiteering in this market. The Competition and Markets Authority found profit levels of nearly 23% for the 15 largest providers of children’s homes. There is good provision in the private sector and there will still need to be private sector provision as we develop, but a 23% profit level is not appropriate competition.
The first solution, as my noble friend said, is to increase the supply of placements—this is where the £90 million is important—and we can use local authorities, the voluntary and charitable sector and ethical investors to do that. That has to be the first step. In making this Statement, my right honourable friend has also made it clear that we will not stand by if that message and action do not provide the necessary placements and we continue to see the profiteering that is breaking the banks of local authorities, when it comes to providing
the care that children need. We will take action on that profiteering, if necessary, and we will have the legislative ability to do it in the children’s well-being Bill.