Compass Community Homes Fall to 'Inadequate' Ratings as Cap10, Graphite Face Profit-Pressure Claims
Updated
Updated · The Guardian · Jun 28
Compass Community Homes Fall to 'Inadequate' Ratings as Cap10, Graphite Face Profit-Pressure Claims
1 articles · Updated · The Guardian · Jun 28
Summary
Two Compass Community children’s homes that had been rated “good” or “outstanding” in 2023 were downgraded to “inadequate” in April 2025 after Ofsted found chaotic conditions, missing managers and safeguarding failures.
Staff told the Guardian the decline followed a push before and after the May 2024 sale from Graphite Capital to Cap10 to open more homes and fill beds quickly, even when staffing and leadership were not in place.
Inspectors said one six-bed home was so unstable that children climbed onto the roof and had sex unnoticed by staff, while another eight-bed home was admitting children despite staff being unable to keep them safe.
Cap10 and Graphite denied that ownership change or profit goals drove weaker care, saying new leadership appointed in 2025 closed or suspended homes, tightened safeguarding and now has 88% of homes rated good or outstanding versus an 83% national average.
The report widens scrutiny of private equity in UK public services, citing Graphite-backed NRS Healthcare’s 2025 collapse after working with 44 local authorities as a warning over debt, resilience and outsourced care.
With private care in crisis, can new laws truly stop firms from putting profits before vulnerable children?
When a PE-backed care provider fails, who is ultimately left to pay for their high-risk gamble on public services?
As private providers collapse, is bringing essential care services back under public control the only way to ensure safety?
Private Equity, Profit Caps, and the Decline of Care: The 2025–2026 Crisis in England’s Children’s Social Services
Overview
As of June 2026, England’s children’s social care services are undergoing major reforms, starting with Ofsted’s new inspection framework. This change follows the 'Big Listen' consultation, which found that single-word ratings were too simplistic and did not reflect local challenges. The new approach removes overall effectiveness ratings and instead focuses on specific areas like leadership and care for children in need. These reforms aim to provide more accurate, context-aware assessments, especially as recent years saw both improvements in some councils and serious declines in others due to rapid, profit-driven expansion. The changes are designed to ensure better oversight and safer, higher-quality care for children.