The Guardian view on private equity in the public sector: children’s services must be freed from debt-fuelled takeovers | Editorial
New analysis by the Guardian has revealed the disturbing extent of these firms’ influence in highly sensitive areas Children’s homes and care placements are not
New analysis by the Guardian has revealed the disturbing extent of these firms’ influence in highly sensitive areas Children’s homes and care placements are not ordinary commodities. Yet Britain has allowed some of its most sensitive public services to become assets in private equity portfolios: bought, loaded with debt, restructured and sold, while the state continues to fund the contracts and vulnerable people carry the risk when things go wrong.
Private equity’s role in public services is not notional. The year after Compass Community was sold by its owner, Graphite Capital, to another private equity group, Cap10, the poor state of some of its children’s homes was made plain by Ofsted reports.
Inspectors who visited two homes in England – which had previously been rated good and outstanding – found “high levels of distress” and staff as well as children feeling unsafe. Cap10 denies that standards fell following the change of ownership.
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