As a result, Children Now has taken a look at what really is happening in residential care and, crucially, how well this market is serving the needs of looked-after children and young people (see p16 to 19). What this has revealed is that, while there have been overall improvements in areas such as meeting national minimum standards, there still is no apparent correlation between the amount councils spend on residential care services and how well such services perform against standards.

Why does this matter? Most importantly it matters because young people in residential care are some of the most vulnerable in our society, with complex needs that require intensive help and support. For every year that sees any variation in meeting these minimum standards, children in care suffer the consequences.

It also matters because a huge part of local authorities' children's services budgets are eaten up by residential care placements. And while costs have rocketed in the last 10 years, outcomes have remained largely static.

Finally, it matters because there is a real danger that we'll end up with a sector that argues endlessly about money rather than focusing on what services and support these children actually need.

Unfortunately, as the Commission for Social Care Inspection has pointed out, the situation is exacerbated by local authorities' continuing failure to develop robust commissioning strategies, and by an overall lack of strong partnership working between commissioners and providers.

So while there is some hope that the looked-after children green paper, the forthcoming consultation on national minimum standards, and the launch of the long-awaited national contract for residential care may help with some of these problems, there is still an urgent need for commissioners and providers to quit their disagreements and work together. Only then can we be sure the children who need it most are given the opportunity to achieve the best possible outcomes in life.