THIS Christmas, hundreds of children in the child protection system will wake up in the company of agency-employed strangers.
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Some are living in supposedly short-term 'emergency care' placements, now lasting up to 12 months and longer.
They are mostly run by for-profit providers paid millions of dollars under state government contracts to keep kids safe.
Statistics obtained exclusively by the Newcastle Herald show that 43 per cent of kids in emergency 'alternative care arrangements' (ACAs) such as hotels and motels are being named in at least one 'risk of significant harm' (ROSH) report.
ROSH reports involve suspected incidents of physical or sexual abuse, neglect, violence, or emotional harm.
The number of kids in ACAs has tripled over the past three years, and their average length of stay is longer.
At last count, there were 488 kids in emergency care in NSW, with 120 of them in ACAs manned 24/7 by shift workers who are mostly untrained, unaccredited labour-hire staff.
The state government says ACAs are supposed to be used as a last resort but that some agencies are using them without investigating options.
The emergency care crisis has cost the state government half a billion dollars during the past two, with individual placements costing up to $1.7 million.
Department of Communities and Justice (DCJ) figures show that over a 12 month period, substantiated ROSH reports were made about for 42 per cent of the children in the 'emergency care' of one provider, while two others had ROSH reports for 34 per cent.
One month, there were 23 reports about the 'risky behaviours' of kids in those placements, plus 16 reports of sexual abuse, and 13 reports of physical abuse.
During 2022-23, the Office of the Children's Guardian received 468 allegations of sexual misconduct, sexual offences and assault by staff, carers and volunteers working in child protection, the vast majority (286) involving non-government organisations.
A DCJ review has found for-profit, non-government organisations, on which the state government now relies heavily to provide out of home care, make little or no effort to support existing foster care placements, leading to foster care breakdowns, and an over reliance on 'alternative care arrangements' such as hotels.
They are also using caravan parks, rental properties and group homes (with a 30 per cent vacancy rate), serviced apartments, and AirBnBs,
The Office of the Children's Guardian says that contracted non-government providers manage 90 per cent of staff working in residential out of home care, of which 32 per cent are sourced from labour hire agencies - and half of them work for more than one agency at the same time.
The review has also found that those service providers are failing to communicate or respond to calls from parents and foster carers, are not properly or correctly recording important information, and are failing to share ROSH reports within their own organisations.
NSW Minister for Family and Communities Kate Washington said the state government had inherited "significant issues" in child protection.
"Our government is squarely focussed on supporting families and rebuilding the foundations of our communities that have eroded over the past decade - through public health, public education, public housing and public transport," she said.
"As a local MP, I know this has been a longstanding issue in the Hunter, in particular. Recently, I've heard directly from local caseworkers about their concerns for the families and children they seek to support.
"Over the past fortnight, I hosted six DCJ staff forums across the state, including in the Hunter, to hear from hundreds of caseworkers about their successes, their challenges, and how we can work together to reform the child protection system.
"These impressive frontline workers are dedicated to supporting vulnerable families and keeping children safe. The NSW Government values them and their work, and we'll be working in partnership with them, the sector and foster carers to create a child protection system which supports families and sees children thrive."