- Providers are sourced from across the country. Although those most often used are generally found in the region (Home Counties and London).
- The provider's base is very varied, from national organisations to smaller local providers.
- The market includes for profit and not for profit organisations.
Market Context
The local authority has a sufficiency duty to place CIC in safe, suitable and local placements. One of the options for children and young people who need a care placement is Fostering. Essex has strong in-house fostering services, yet recognises the need for Independent Fostering Agencies (IFA) to support. This can be due to the diverse needs of our children and young people and add value to support our children and young people who need a placement.
The Market varies in provider size and scope. ECC's framework consists of National Organisations and local providers who cover a range of services. This includes:
- Standard: Placements for children or young people where they have a low to medium level of need.
- Enhanced: Placements for children or young people where they have a medium to high level of need. For example history of placement breakdowns, mental health needs, mild to moderate disabilities.
- Intensive: Placements for children or young people where they have significant levels of need. For example complex health needs or disabilities, or low attendance or excluded from school, significant substance misuse.
- Parents and Children: Placement for a parent and child/ren, or two parents and a child/ren. These placements are for when there is an assessed need for continuing assessment and on-going support.
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The Market for Essex consists of Framework providers and spot providers. When our internal Fostering Service is unable to support children and young people, placements are always sought via the framework in the first instance. If no offer is forthcoming a placement is then sought via spot providers.
The IFA Framework was recently procured in November 2022. ECC has 25 providers on the framework. Providers can join the framework on an annual basis around November in each year for the duration of the framework.
Current Market Status
ECC takes pride in working in partnership with our Independent Fostering Agencies. Striving to improve and shape our service to meet the needs of our CIC. ECC has good number of placements within Essex and has stability with providers that deliver our services.
Moving forward we would like to increase support and provision for emergency placements, including those referrals late in a day. These occur due to unforeseen circumstances to keep children and young people placed near their homes as much as possible.
| Market Quality | Market Supply | Market Demand |
|---|---|---|
| Moderate | Low | High/Very High |
 |
 |
 |
| Market Workface | Market Ambition | Market Maturity |
| Low | Increase Supply | Established |
 |
 |
 |
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Total Number of Providers: |
49 |
|
Total Number of Placements: |
180 |
|
Total Market Spend per year: |
£8.2m |
|
ECC Funded Placements (Current) |
180 |
|
Number of Provider Entries/Placements (22/23): |
7 |
|
Number of Provider Exits/Placements (22/23): |
9 (14 in regards to the framework) |
|
Provider Quality – Good or Outstanding: |
65.7% |
|
Average Accommodation Placement Size (2022-2023): |
4 Placements per IFA (Financial Year) |
|
Framework/spot Placement Ratio (2022-23): |
18.75% Spot |
|
Number of Placements per year: |
80-85 |
|
Number of Emergency Placements: |
15 (Average) |
|
Number of Planned Placements: |
65 |
|
Average Length of Stay: |
46 are between 5-10 years |
|
Average Pack Cost per week: |
£970 (Increasing) |
|
Expected future Capacity Required: |
76 in the next 2 years |
- Declining provider engagement via framework. We have lost providers for every iteration of the Fostering Framework. When receiving feedback about this many providers cite a preference to spot purchase placements. Opposed to being on a framework, which they regard as inflexible.
- Providers on the framework do not translate to engagement. Several of our providers have been a part of the framework through many iterations. Some do not attempt to source placements with ECC. It is presumed that they use the framework as a source of understanding current ECC prices and to check current capacity within ECC.
- IFA fees are increasing , with the cost of an IFA placement being double in-house costs. Fees are officially based off the cost-of-living crisis. Co-operation across other LAs have shown that IFAs are growing bolder in their demands. 15% uplifts have become no longer uncommon.
- ECC are reliant on 6 main providers for our placements resulting in less bargaining power to reduce fees to these providers.
- The cost of running and owning a home has increased in the last few years and these costs are passed onto a placing authority.
- Increased fees and a deluge of uplift requests have placed increased burdens on ECC Finances.
- New national terms and conditions for contracts via NARF. Building relationships with our providers via contract management interviews have been implemented. We are also meeting with providers who have not placed bids against the framework over the years to understand why.