This paper presents findings from the first large-scale prospective longitudinal study of children and young people in out-of-home care (OOHC) in Australia, comparing the socio-emotional outcomes of government- and non-government-managed care. The study focuses on physical health, socio-emotional wellbeing and cognitive/learning ability. 

The New South Wales Government started transferring OOHC services from the Department of Communities and Justice (DCJ) to non-government organisations (NGOs) in March 2012, following the Special Commission of Inquiry into Child Protection Services in NSW in 2008.

Key findings

• There was no evidence that case management providers (i.e. NGO or DCJ) had an impact on children’s socio-emotional wellbeing.
• While children managed by NGOs generally had poorer socio-emotional wellbeing than children managed by DCJ, the difference was not attributable to the child being case-managed by NGOs but to other child- and carer-related factors.
• Older children (7-11 and 12-17 years) appeared most at risk of adverse socio-emotional development.
• So were children with a disability, with a temperament trait of low sociability and persistence or high negative reactivity.
• Positive socio-emotional wellbeing was found to be associated with children being placed with older carers, carers with low psychological distress, carers with a warm or less hostile parenting style, and placement stability.
• Negative socio-emotional wellbeing was associated with children whose carers were not satisfied with having enough information about the child or opportunities to meet other foster or kinship families.