Councillor Laing (Deputy Leader and Cabinet Member for Children’s Social Care, Culture and Communication) introduced the report and highlighted the following key points:

a)    In November 2024, the Leader agreed capital investment for the development of children’s homes in Plymouth and was going to help the council tackle profiteering by independent sector care home providers;

b)    The programme would provide high-quality Council-run children’s homes in Plymouth. The report detailed progress made over the past year and lessons learned. The first home was expected to open soon, despite delays caused by Ofsted registration requirements, which were identified as a key risk;

Victoria Whitman (Head of Service for Strategic Int and Planning) added:

c)    The design and cost considerations for Project C, which involved a £3 million capital investment for a four-bedroom specialist home were highlighted. The build was highly specialised, incorporating features such as anti-ligature fittings, magnetic locking systems, privacy screens, calming environments, and breakout spaces to balance safety with a nurturing atmosphere. The design aimed to allow full capacity without compromising safety or wellbeing, given the complexity of the children’s needs;

In response to questions raised it was reported that:

d)    The cost associated with the specification of the build was essential to meet the needs of children at risk of deprivation of liberty and to avoid hospital-like environments. It was confirmed that a significant contingency had been built into the budget to manage unforeseen costs. The Council had also secured £1.5 million of Department for Education (DfE) funding through a competitive process, which was match funded by the Council to the sum of £1.4 million which was a fantastic opportunity for Plymouth;

e)    The council was acting as a corporate parent to its looked after children and the council should provide the best possible care for its children;

f)     The homes could potentially generate income by accepting placements from other authorities in the future.

g)    It was confirmed that a pipeline of future homes was being developed, with a second home secured and a bid planned for additional capital investment to fund a third home;

h)    Savings as a result of the programme would offset growth lines in the revenue budget and borrowing costs would be managed within the directorate’s budget;

i)     Recruitment was underway for positions within the children’s homes, with interviews planned for early 2026 and start dates in April 2026. Retention was challenging but it was stressed that creating high-quality environments would help retain staff. The service had plans to grow it’s own managers through training and development opportunities;

j)     Salaries were competitive and included enhancements for unsocial hours, although private providers often offered additional incentives;

k)    The Panel raised concerns about delays in Ofsted registration and asked whether the process could start before building completion. It was confirmed that applications could only be submitted once buildings were complete and Ofsted’s current timescales were 6–12 months for emergency applications and 6–18 months for standard applications. The Council would emphasise the urgency of registration and maintain quality assurance for any unregistered placements;

l)     Plymouth City Council had engaged with neighbouring councils and visited other provisions to learn from their experiences of setting up their own provisions;

Actions:

1. Officers to provide a briefing for Members on the complexity of needs for children who would be placed in Project C;

2. Officers to explore a workforce development programme for registered managers in partnership with Human Resources and Organisational Development;

3. Officers to continue engagement with other local authorities to share learning and best practice.

Recommendations:

The Panel agreed to:

1. Endorse the development of Council-run children’s homes in Plymouth;

2. Write to Ofsted to express concern about registration delays and request consideration of process improvements;

3. Note its support for further capital investment to expand Council-run provision.