Profits made by Britain’s biggest children’s home provider a ‘scandal’

The profits made by Britain’s biggest children’s home provider are a ‘scandal’, claim campaigners. 

Caretech increased its profits by 140 per cent to £42.3m in the six months to March 31. 

Furious: Critics said Caretech was making huge profit margins, of 28.4 per cent in its children’s services division from fees paid by stricken councils

Furious critics said it was making huge profit margins, of 28.4 per cent in its children’s services division from fees paid by stricken councils. 

Campaigner Martin Barrow said: ‘This is a scandal. Wealthy investors are cashing in on children and young people in care.’ 

The UK competition watchdog launched a probe into the sector amidst concerns over rising fees charged by private companies. 

Caretech said profits ‘increased because of continued investment’, and that the profit figure was flattered by non-underlying accounting adjustments.