Futurebuilders investment in The Who Cares? Trust’s CareZone service (27/07/2006)

27.07.2006

Futurebuilders England today announced its withdrawal of further investment in the CareZone service – a secure ICT network for children in care. CareZone is run by The Who Cares? Trust (WCT) and offers support and information to looked after children and young people for their life, health and learning; helping them to link with each other, their carers and professionals in a secure and child-friendly virtual environment.

Futurebuilders England approved an investment of £1,359,860 (including a grant element of £175,680) to WCT in December 2004 of which £845,959 has been spent. The investment was made to develop and enhance the CareZone technology, extend services to those in care and develop a wider reach to the most vulnerable children. The loan element of the investment was expected to be paid back through local authorities purchasing the CareZone service for looked after children in their area.

Recent financial and structural upheaval across children’s services has meant that sales and renewals of CareZone have suffered, with fewer local authorities being able to subscribe than expected. Despite some local authorities using CareZone, WCT has not been able to meet its 2006 revenue targets, which are a condition for continuing investment by Futurebuilders.

Richard Gutch, Chief Executive of Futurebuilders England said:

“The CareZone service at The Who Cares? Trust (WCT) was one of our early investments and the decision to withdraw further investment from this project has not been taken lightly.

“Although we appreciate the benefits to children in care through the CareZone service, recent changes in the structure and procurement of children’s services have led to an unpredictable purchaser market; impacting on the ability of WCT to secure and renew contracts with local authorities and thus sustaining the service for the future. After careful consideration of all the options available in this difficult situation, we cannot see an upturn in the market within a reasonable timeframe to continue our investment. 

“Given these circumstances we will not be requesting repayment of the loan and are supporting WCT in the closure of CareZone to reduce the impact to the charity and its other valuable programmes of work.

“CareZone has been a bold attempt by trustees, staff and supporters of WCT to improve the day-to-day experiences of looked after children through an innovative and secure online community. It had huge potential and our decision to withdraw further investment bears no reflection on the value and quality of the service to children, or the committed staff and professional supporters who run it.”

Susanna Cheal, Chief Executive of The Who Cares? Trust said:

“Staff at The Who Cares? Trust have made an immense effort to deliver CareZone to children’s services. It is a modern and extremely effective way of linking children and young people in care with each other, their carers and professionals supporting them. This is done in a secure, trusted online community and brings direct access to a whole range of resources and adult support. We believe that we have succeeded in this and we know children have benefited from the service. We are extremely disappointed to lose this opportunity to reach the most vulnerable children and support them safely online through their experiences in care. However, without the prospect of enough local authorities sustaining the service in this uncertain financial environment, we accept that Futurebuilders had no alternative but to withdraw further investment.

“We regret letting down the children and young people who have been enabled to use the service and our existing and new local authority partners, committed to its value in helping them deliver services directly.”

Ends

For further information please contact Jenni Anderson or Megan Meredith at Futurebuilders on 020 7927 6356.

Notes to editors

• Futurebuilders England is the Government-backed finance scheme for the voluntary and community sector. Our investment packages offer organisations that want to deliver better public services a combination of grants, loans and support. Organisations pay back the loans with revenue gained from contracts with public sector agencies such as local authorities and primary care trusts.
• The Who Cares? Trust (WCT) is a national charity (charity registration number 1010518) working to improve public care for around 60,000 children and young people who are separated from their families and living in residential or foster care. WCT promotes the interests of children and young people in public care and acts on their views and experiences to create positive change in their day to day lives.