This report examines the out-of-home care (OOHC) system in New South Wales and finds that it is not fit for purpose, failing to meet the needs of children and young people, while also being inefficient in its use of funds.

The review sought to identify key issues affecting both the well-being of children and young people in care and the value for money for taxpayers. It explores the performance and sustainability of the system, focusing on specific areas such as high-cost emergency arrangements, residential care, and the effectiveness of the current service delivery model. 

The report finds substantial failings across the system, which it describes as lacking in accountability and oversight, overly complex, and largely devoid of robust evidence-based practices. The report makes 13 recommendations to rebuild system oversight, improve management and ensure that practices are evidence-informed and cost-effective.

Findings

• Weak governance, lack of clarity, and inadequate program oversight have led to inefficiencies, weak performance management and the poor use of resources.
• Accountability and oversight are significantly lacking. 
• The current legal framework needs to be reformed to improve outcomes for children in care. 
• Fragmented and siloed information capture hinders effective service delivery and outcome measurement.
• The Reportable Conduct Scheme is burdened by inconsistent actions, a lack of procedural fairness and lengthy investigations, that negatively impact both carers and children.
• The voice of children, young people, families and carers is not heard.

Key recommendations

• Cease outsourcing case management to non-government providers before final orders are made by the Children’s Court.
• Maintain a system-wide financial policy that standardises care allowance, expenses, and additional supports that carers can access for children and young people in their care.
• Require OOHC providers to clearly identify the direct services and supports provided to children and young people as a result of taxpayer funding.
• Establish mechanisms and processes that actively seek, incorporate, and respond to feedback from children and young people, carers, and families.
• Boost accountability in the outsourced sector through key performance indicators, comparative analyses, and regular financial and performance audits.
• Ensure all OOHC placement types are evidence-informed.