Monetising children in care is morally bankrupt

David Scattergood on how the work of independent fostering agencies is offering a glimmer of hope and Peter RC Williams on the government’s obligations. Plus a letter from Nina Lopez and Tracey Norton

George Monbiot is right to highlight the state of the free market in children’s social care (How can a child in care cost £281,000 a year? Ask the wealth funds that have councils over a barrel, 18 May). With more children in care now than ever before, children’s residential and foster care provision is a lucrative cash cow for hedge funds and asset management companies, using taxpayers’ money to profiteer from the lives of children in care.

However, there is a glimmer of hope. A small number of independent fostering agencies are charities, providing services on a not-for-profit basis. Working alongside local authorities, with no shareholders to enrich, not‑for-profit fostering agencies reinvest surplus funds back into their organisation to fund activities, educational support, and therapeutic interventions for their children. They also fund training and financial support for their foster carers, and activities such as holidays for children with disabilities and additional needs. This model should be the rule, rather than the exception for the whole sector.