I can completly understand why LA carers feel about this huge discrepancy, and some of yu will know that many of us in SSs have consistently badgered senior managers on this issue, but I'm afraid at the end of it plainjayne is right. As for where does the money come from, there are several budgets and "slush funds" where money can be moved around. The thing is there is absolutely no way round the problem of a child having to be placed and nothing available only an IFA carer - the child can't be returned to an abusive home. As pj says IFA placements are a very last resort and as soon as an "in house" placement becomes available the child is moved from the IFA carer.
I actually lay the blame for IFAs and all the privatisation of public services firmly at the feet of this awful coalition, who are waging war on the poor and slashing the budgets of public services. If privatisation of the fostering service (via IFAs) was not legal then these IFA directors would not be making huge sums of money and driving around in Porshes and having strings of race horses etc., and LA fostering services were properly resourced, then there would not be a problem about the discrepancies between IFA payments and LA payments. BUT the govt are in favour of any kind of privatisation and won't rest till all public services are privatised, to make big profits for the directors and share holders.
The same question can be asked of the govt - how is it that there is HAS to be cuts to disabled people, caps on housing benefits, and sick people being told they are fit to work, and the latest "bedroom tax" all supposedly to help bring down the deficit (all in this together........ha bloody ha....most of the cabinet are millionaires) BUT money is found to pay billions of pounds to private companies to carry out work capability tests, help people get jobs,
(supposedlym althought there is an abysmal record) prisons run by private companies and schools being made into acadamies - I could go on and then there;s the defence budget - billions has been found for this - where from - the huge budgets that they hold.
Sorry LA carers I know you will still feel aggrieved and I used to tell senior managers that it was a great wonder that we had any LA carers left, and I still think that, but at least you can think you are not helping to line the pocketsof these entrepeneurs who seized the gap in the market to privatise te fostering service. Sorry not much consolation I know.