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Councils spend millions on unregistered children's homes, report says

English local authorities spend over £125m annually on unlawful children's home placements, according to The Guardian.

The short version

  • An investigation reveals councils in England spend more than £125m annually placing vulnerable children in unregistered care homes.[The Guardian]
  • Over two years, local authorities paid £250m to more than 480 private firms for 1,800 unlawful placements.[The Guardian]
  • Children's commissioner Rachel de Souza highlighted systemic failings, as regulator Ofsted recorded 710 illegal homes this year.[The Guardian]

Key facts

  • Councils in England spend more than £125m each year placing vulnerable children in illegal care homes.[The Guardian]
  • Over the past two years, more than 480 private companies received £250m from local authorities for 1,800 unlawful placements.[The Guardian]
  • Ofsted detected 710 illegal homes this year, a sharp increase from 144 identified in 2020.[The Guardian]
  • Catalyst Care Ltd was fined £92,000 after operating three unregistered care homes in Kent.[The Guardian]

What remains uncertain

  • Creative Outdoor Group disputes an allegation by a former care worker that a boy lived in a tent on a farm for four months in 2022.[The Guardian]
  • Prospero Health and Social Care stated that while it provided staff, it did not operate unregistered care facilities.[The Guardian]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.