Sutton Council is set to join a London-wide initiative to reform children's care services, aiming to improve outcomes for vulnerable young people and enhance the sustainability of care provision. The move is part of a broader effort to address challenges in the children's care market, with the Department for Education (DfE) providing funding for the London Regional Care Cooperative (RCC) through to April 2028.
The People Committee of Sutton Council met on Thursday, 18 June 2026, to discuss the borough's engagement with these regional collaboration efforts. This initiative aligns with national strategies encouraging local authorities to work together.
A key focus of the discussion was the proposed establishment of the London RCC. This initiative aims to leverage the collective power of London boroughs to improve sufficiency planning, market management, and workforce development within children's care. The DfE funding is designed to cover Foundation and Delivery stages up to April 2028,
after which local authorities will decide on continued membership and functions.
Lucy Penny, South London Strategic Lead for Children and Young People, explained the rationale behind these reforms. The current market for children's care home placements is dysfunctional and dominated by the private provider market,
she stated. Studies have concluded that individual Local Authorities can be limited in engaging effectively with the market to achieve the right outcomes for children.
The proposed RCC would not replace local authorities' statutory accountability but would act as a collaborative body to coordinate efforts across the capital. Its functions could include forecasting needs, managing the family placement system, and strategic market management. The RCC will focus on Forecasting and sufficiency planning
and Strategic market management and supplier relationships,
aiming to leverage London Local Authorities' collective power, expertise, and resources
to more effectively address long-standing challenges in the children's social care market.
The goal is to ensure improved engagement, partnership working and purchasing to improve the choice, outcomes and financial sustainability of local homes in meeting the diverse needs of children in care.
Councillor Gemma Munday, Chair of the People Committee, highlighted the importance of these regional efforts. Sutton Council is ambitious for its children and families and prioritises keeping families together,
she said. When a child must enter Local Authority care, the Council acts as the 'Corporate Parent' responsible for their safety and well-being.
These regional initiatives are seen as crucial steps in ensuring that children in care have access to high-quality, stable, and local placements, while also aiming to control escalating placement costs and improve financial sustainability for the council. The RCC will also focus on Workforce planning, resilience and capacity building.
A South London pilot for a shared residential service aims to support the continued development of a skilled and stable workforce, establish a regional standard of care, optimise residential home occupancy with shared placement vacancy systems, and explore the option of shared children's home management, potentially including a shared 'Responsible Individual' role.
Mechanisms for transparency and accountability are being considered, with the London RCC not replac[ing] Local Authorities' statutory accountability.
The council will retain oversight and input via membership of a London RCC Board and the Association of London Directors of Children's Services.
Furthermore, a Young People's Board will also be established by the RCC to ensure its work programme remains child centred.
More information can be found in the Public reports pack 18th-Jun-2026 19.00 People Committee.
