Committee publication · Correspondence · 12 January 2026
Letter from the Chief Executive Officer of IESE CIC relating to the written evidence submitted by the Children’s Homes Association to the Committee’s inquiry into Financial sustainability of children’s care homes, 23 December 2025
Summary
IESE CIC's CEO responds to the Children's Homes Association's written evidence to the PAC inquiry, disputing characterisations of CareCubed as a price cap tool. IESE clarifies CareCubed is a diagnostic and benchmarking tool intended to inform (not determine) fee-setting, incorporates comprehensive cost modelling, includes quality controls and training, and states there is no evidence it has reduced investment or worsened outcomes.
Key findings
- IESE disputes CHA's characterisation of CareCubed as a de facto price cap; states it was designed as a non-binding diagnostic and decision-support tool to inform fee negotiations alongside provider cost evidence and professional judgement
- CareCubed applies comprehensive cost modelling including voids, capital costs, and reinvestment margins, not a simplistic need-versus-fee correlation model
- IESE provides CPD-accredited training, biannual data model updates, and governance reinforcement; claims there is no evidence CareCubed has reduced investment or capacity—noting Ofsted registrations are increasing
- Rejects positioning CareCubed as a driver of sector-wide investment or capacity issues; attributes these to broader regulation and commissioning challenges
- Commits to customer briefing, guidance note re-emphasising outputs as evidence not caps, and training sessions for providers and commissioners
Tone
AdversarialTopics
children's-social-carepublic-financecommissioning
Key actors
IESE CIC, Annabelle Atkin, Children's Homes Association, Public Accounts Committee, Local authorities, Ofsted
Notable line
“CareCubed should be used as a non-binding input to negotiations alongside provider cost evidence and professional judgement …”
Key Quotes
“CareCubed was developed and implemented as a diagnostic, decision-support and benchmarking tool to improve consistency in understanding needs, support transparent discussion, and inform (not determine) fee- setting.”
“Where any tool is treated as a de facto ceiling, this is not appropriate. Fee-setting should reflect realities of delivery, including safe staffing and complexity.”
“There is no evidence that CareCubed has led to reduced investment or capacity; Ofsted registrations are increasing.”
“Sector-wide issues such as capacity and regulation timelines are acknowledged, but no single tool should be positioned as the driver of investment decisions.”
Source · parliament.uk record ↗