Councils pay more than £125m a year placing vulnerable children in illegal care homes in England
Summary
Councils in England are spending over £125 million a year to place vulnerable children in illegal care homes that are not registered or properly inspected. These homes often lack proper safeguards, and a variety of private companies, including ones outside the care sector, profit from this situation due to a shortage of legal placements.Key Facts
- Councils have paid more than £250 million over two years for about 1,800 placements in unregistered children’s homes across England.
- Operating a children’s home without registration by the government body Ofsted is a criminal offense.
- Despite this, nearly all local councils use illegal care homes because they have few other options for difficult cases.
- Some placements cost more than £1 million each, partly due to the need for round-the-clock care.
- Over 480 private companies run or staff these illegal homes; they include property developers, builders, musicians, and ex-military personnel.
- Prospero Health and Social Care is the biggest provider, paid £7.6 million for staffing 86 unregistered placements in two years.
- Ofsted has recently taken a stronger stance, including winning a criminal conviction against an illegal care provider.
- The children’s commissioner for England described the situation as systemic failure, with children treated as a business opportunity rather than protected.
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