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LGA warns that private organisations in massive debt puts children's care at risk

Large numbers of children's homes potentially at risk

The Local Government Association (LGA) has voiced concern over private children's care companies debts.

Nearly three quarters of children's homes are provided by private organisations, and six out of ten of the largest organisations having more debts and liabilities than assets. The LGA is concerned that this places the stability of children in care at risk.

The research conducted by the LGA also revealed that eight of the biggest providers merged to become the three largest groups with no system in place to track the impact of such mergers.

The LGA's full statement is available on the LGA website.

The PDF of the report can be downloaded here.