Hi CatH I can't really answer the query that you raise about budgets. It is not as simple as you pose. The LAs don't simply have a pot of money and when it's gone it's gone as you suggest. There are several budgets in the SSDs, designated for particlar services, so money can be swapped around and where a budget looks like it is "healthy" money can be moved to one that is looking like it is heading for an overspend. Budgets are monitored closely and cuts made where it looks like budgets are not going to be brought in on target at the end of the financial years 31st March each year. I have been horrified to learn on these threads that many foster carers are being told that the have to do the transport for contact and without a mileage allowance!
I know that in the LA where i used to work that social workers no longer get their lump sum of approx £45 per month for being an "essential user" and this amount is meant to offset charges for maintenance of the vehicle, tax, insurance etc. So cuts will be made in all sorts of places of which I have no knowledge of course.
I also know that the threshold for removing children and bringing them into the looked aftered system has been significantly raised, which means sadly that some children are not going to be kept safe with their birthparents.
As far as funding IFAs are concerned there will be part of the budget set aside and the amounts in that budget will be based on trawling back through the previous financial years to give some indication of how many IFA places will have to be funded. Managers have to predict how many IFA placements their particular area will need to fund. Also there is an understanding by all family placement staff that IFA children are brought back into LA care as soon as a vacancy is available.
The issue you raise about having sufficient money to pay extortionate rates to the IFAs, but not being able to fund LA carers at the same rate is one I cannot answer, because as you will see from my previous posts this is an issue that many of us middle managers raised time and time again, and this was at a time before the coalition came in slashing budgets with a pick axe.
You comment that the business model of children's services is flawed and I don't disagree with you, but LA Social Care (be it adult or children's services) is just a microcosm of the whole of society. In my opinion it is the system under which we live (capitalism) that is fundamentally flawed because the vast majority of the wealth of the country is held by a very small percentage of the population. Why are bankers still getting their huge bonus's - why is George Entwistle being rewarded for his incompetence over the Jimmy Saville issue by a £450,000 pay off. "Ordinary" incompetent workers would be lucky to get a week's wages if they resigned because it had been demonstrated they were seriously incompetent and knew they would be sacked if they didn't resign. Why are half of the cabinet millionaires, yet see fit to wage war on the poor in a way that I have never seen in my lifetime (I am 68)
I must stop or I will go on and on.........this coalition has squeezed all public services until the pips have dropped out and are intent on privatising all public services, so that the business model is adopted and the staff, teachers, nurses, doctors,social workers, police, fire service etc can have the terms and conditions of their employment completely altered for the worse, so that big profits can be made for the business and shareholders will also be paid huge dividends etc. This is the model under which we are now living and it scares me, because Cameron and his ilk don't give a damn about the child left at home because SSDs can't afford to remove him because they don't have the finance available for a foster home (or IFA) or whatever, or the poor service patients are getting in the NHS because they too are seriously under resourced. Why should the politicians worry about the NHS when they all have private insurance.
You may not agree but this is my point of view and I suppose it depends on your political orientation. This coalition are wanting improved services with ever decreasing budgets..........it can't be done.