My Lords, I am grateful to those noble Lords who have contributed to this debate. I am acutely aware of the concerns Peers have raised about this clause. I thank particularly my noble friends Lady Hamwee, Lady Eaton, Lord Storey and Lord Eccles for helping me to understand the nature of those concerns.
Following constructive discussions, I am persuaded that the Government’s amendment and the commitment to report to Parliament do not provide for the parliamentary scrutiny that many noble Lords would wish to see. I am therefore very grateful to my noble friends for tabling their Amendments 4A to 4D and 6A. I am persuaded that it is right for a direction to all local authorities to be subject to full and rigorous scrutiny by Parliament. I therefore confirm my support for their amendments and, if they are accepted, I will not of course need to move my Amendment 6.
Before I address Amendments 4 and 5 I remind noble Lords of the rationale of the clause as set out in the recently published policy statement. The clause is intended as a backstop should the current and significant efforts of local government and voluntary agencies prove insufficient. Unfortunately, we have to accept that this is a possibility as adoption agencies have to work within a flawed system. The fundamental problems
are the structure of provision, based around local boundaries, and the unhelpful incentives associated with this structure. This constrains the ability to recruit adoptive parents in sufficient numbers. As a result, the system fails to deliver enough adopted parents to meet national demand, as we have already discussed.
However, let me be quite clear: it is the system that is failing to meet national demand, not the individual local authorities and voluntary adoption agencies that make up the system. The distinction is important and can be demonstrated by statistics. Recently published Ofsted data showed a 34% increase in adopter approvals in 2012-13 compared to the previous year. This is a huge achievement on the part of individual agencies. Local authorities have delivered a 32% increase in adopters recruited and approved and voluntary adoption agencies a 53% rise, and they should be congratulated.
Impressive though these numbers are, the sad truth is that this is still not enough to meet the needs of the number of children waiting for a loving home. At the end of March 2013, there were 6,000 children approved by the courts for adoption, waiting to move in with a permanent family. This is 15% higher than the year before. Furthermore, we estimate that we need around 3,100 additional adopters to meet the existing demand of the children who were already waiting with a placement order.
So we face a real challenge to recruit more adoptive parents. To meet it, we need to transform the system and tackle the underlying structural problems. I feel that we are well placed to do so. After welcome and constructive discussions with colleagues from local government and the voluntary sector, we have an agreed proposition for a national adoption leadership board. This is a significant milestone and demonstrates a collective commitment to take nationally driven action to close the adopter recruitment gap. The board’s members will be senior figures from the core organisations within the adoption system in England. I therefore see this board as the principal forum to deliver significant improvements in the performance of the adoption system.
Under the board’s leadership, we expect to see significant changes in the shape and structure of the providers available, including increasing consolidation and scale among local authority adoption agencies; growth in the capacity of the voluntary sector and an increase in the proportion of adopter approvals for which it is responsible; and more partnership working between local authorities and voluntary adoption agencies, local authority employees, spinouts into mutuals and the entry of some new providers.
These sorts of things are already happening. For example, I was pleased to see from the recent Ofsted publication that, as my noble friend Lady Hamwee referred to, 12 local authorities now provide adoption services under joint arrangements. These are Bedford borough and Central Bedfordshire; the west London tri-borough; Leicestershire and Rutland; Shropshire and Telford; and, as the noble Baroness, Lady Hughes, referred to, Warrington, Wigan and St Helens.
I also welcome the partnership arrangements that exist between local authorities and voluntary adoption agencies—for example, those operating in Harrow,
Kent, Cambridgeshire and Oxfordshire. We just need to see these types of arrangements happening more quickly and more often.
Clause 3 therefore provides levers of last resort. It is the backstop to a number of things that Government are doing to support local authorities and voluntary adoption agencies. I have already mentioned the Government’s support for the new national adoption board. We have invested £150 million through the adoption reform grant to support local authorities in 2013-14. We are also investing £16 million to build the capacity of the voluntary sector.
We know that these investments are having an impact. We expect there to be a number of new voluntary adoption agencies in the near future and we know that many local authorities have made good use of the adoption reform grant. For example, they have recruited additional staff, provided staff training and development and funded a range of marketing activities to recruit more adopters. I was particularly interested in the work the Southwark area is doing, as I have already mentioned. It used some of its funding to develop an innovative recruitment campaign to target harder-to-reach prospective adopters using a reward scheme. Southwark is also working with Lambeth to fund an outreach worker to promote the recruitment of adopters from the BME community.
I will now explain the government amendment, which tries to address some of the concerns raised in Grand Committee. Amendment 6 delays the implementation of new subsection (3)(c) until March 2015 at the earliest. It therefore provides more time for current reforms to embed and for the new leadership board to have an impact. The Government also commit that the Secretary of State will report to Parliament before issuing any direction under new subsection (3)(c).
This report would set out an updated analysis of the state of the adopter recruitment market. It would cover both the local government and voluntary sectors and analyse their current structure and effectiveness. It would also include the latest estimate of the adopter recruitment gap. In essence, it would justify the requirement for a direction under new subsection (3)(c). Any such direction would provide sufficient time for new arrangements to be put in place. This is an important point as structural change cannot happen overnight.