In circumstances where Ofsted and other reports indicate that a Local Authority’s Children’s Social Care Services are performing inadequately over a period of time, the Secretary of State for Education may issue a Statutory Direction requiring the Local Authority to transfer the service to an independent body. The type of independent body established to provide the services can take a variety of formats. However, regardless of the exact legal basis on which the independent body is based, it is important to note that the statutory duty to provide the service and associated non-delegable duty of care remains with the Council at all times.
Although liability claims against Children’s Services are relatively uncommon, they can by their very nature be sensitive and high profile, take many years to materialise following the incident, and result in an exposure costing several millions of pounds. It is for this reason that even where all services are effectively transferred to an independent body with its own insurance arrangements, both the Local Authority and their insurance provider continue to maintain a close working interest and involvement in the risk exposure and the conduct of any associated claims.
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