Summary
The cost of caring for vulnerable children in residential homes in England has nearly doubled in five years, according to a report by the National Audit Office. Despite the high expenses, many children do not receive proper care due to a profit-driven market that limits suitable placements. The report calls for more government oversight to address these issues and improve care quality for children.
Key Facts
- The cost of children's residential care in England has nearly doubled in five years.
- On average, councils spent £318,400 per child in a children's home in the year ending March 2024.
- Total spending on residential placements reached £3.1 billion in 2023-24.
- Many children in care are placed in homes far from their local communities.
- The market for children's homes is described as "dysfunctional" and profit-driven, with large providers making significant profits.
- 84% of children's homes are run for profit.
- The report suggests that a lack of appropriate placements allows private providers to select children based on profitability.
- The Department for Education plans reforms to improve the care system and reduce profiteering.
