The children's care system in England is facing a severe crisis, with a burgeoning 'shadow market' of unregistered children's homes charging fees as high as £30,000 per week, the watchdog Ofsted has revealed.
A System 'Bent Out of Shape' by Profit
In a damning report, Ofsted's chief inspector, Sir Martyn Oliver, labelled the situation an 'ongoing national scandal'. He stated that the profit motive is now dictating where and by whom vulnerable children are housed, rather than their need for loving, stable care. The watchdog reported that it had initiated nearly 900 investigations into potentially illegal, unregistered homes in the year to March.
The crisis stems from a critical shortage of appropriate places in legitimate, registered care homes. Ofsted's report found that almost 90% of local authorities admitted to placing children in unregistered settings because they could not find a suitable registered home. This practice creates a 'shadow market' that exploits the desperation of councils and fails the children involved.
Spiralling Costs and Regional Inequality
Ofsted warned this is a 'crisis both for children and for local councils', whose budgets are being devastated by the spiralling costs. The report highlighted that new, unregistered homes are proliferating disproportionately in areas of the country where housing is cheapest, suggesting operators are driven primarily by profit margins.
The investigation also uncovered stark regional inequalities in the quality of children's services. While 88% of local authorities in London were rated good or outstanding by Ofsted, that figure plummeted to just 46% in the North West of England. This disparity places additional strain on already struggling regions.
Call for Urgent Government Action
Sir Martyn Oliver emphasised the compounding nature of the problem: 'As a system, we’re putting more stress and pressure on an area that’s already struggling... It impacts everything.' He called for an immediate stop to the practice.
Ofsted has issued a direct plea to the government, urging it to work with local councils to 'drive out all use of unregistered children’s homes'. The watchdog insists that sustainable solutions and adequate funding for proper, registered care are needed to protect society's most vulnerable children from being failed by a system bent out of shape.
