Cost of children's homes doubles but care can be poor, says report
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.
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