English Councils Pay Up to £2 Million for Illegal Children’s Homes Despite 2021 Ban
Updated
Updated · BBC.com · May 20
English Councils Pay Up to £2 Million for Illegal Children’s Homes Despite 2021 Ban
3 articles · Updated · BBC.com · May 20
FOI data and reporting found English councils are paying more than £2 million a year per child in some unregistered children’s homes, even though such placements are illegal.
Around 800 children are being placed in these settings because councils cannot find legal homes for those with the most complex needs, including children requiring constant supervision, restraint or court-ordered deprivation of liberty.
The shortage persists despite registered children’s homes in England doubling to 4,455 in eight years; average legal placements now cost £6,100 a week, while some specialist placements reach £30,000-£40,000 a week or more.
Providers and experts blame a market distorted by private investors, long Ofsted registration delays of up to 18 months, and risk-averse operators after major safeguarding failures such as the Hesley abuse scandal.
The government says new legislation, £53 million for new homes and 10,000 more foster places will improve safeguards, but critics say the response is too small for a system leaving vulnerable children in unsafe, costly care.
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Unregulated Children’s Homes in England: Systemic Failures, Soaring Costs, and the Human Toll of Illegal Placements
Overview
Despite a legal ban in 2021, unregistered children’s homes remain a growing crisis in England. A severe shortage of legitimate, specialist placements forces local authorities to use these illegal homes, putting vulnerable children at serious risk and creating heavy financial burdens. These unregulated settings lack essential safeguards, leading to potentially devastating consequences. The ongoing shortage drives a shadow market, where private providers exploit the situation for profit. This cycle highlights deep systemic failures, as the demand for appropriate care far exceeds the supply, leaving children exposed and councils struggling to fulfill their duties.