Children in care being illegally placed in unregulated ‘profiteering’ homes

By Nick Lester, Reporter29th October 2024News EnglandChildrens Care Homes, Childrens Services, Local Authorities, Looked After Children, News England

Vulnerable youngsters are being illegally placed in unregistered children’s homes at a cost of up to £20,000 a week, Parliament has been told.

Acknowledging the “unsatisfactory” situation, education minister Baroness Smith of Malvern said social service chiefs had no choice given the lack of places.

The Labour frontbencher also branded profiteering from children in care as “unacceptable”.

Tackled on the issue at Westminster, Lady Smith said: “Children must live in safe, high-quality homes, which is why it is a legal requirement for children’s homes to register with Ofsted.

“This means that they can be inspected and children are safe, and that where there are failings, they are addressed.”

She promised to strengthen regulation through legislation.

Pressing the minister, Liberal Democrat peer Baroness Tyler of Enfield said: “There remains a real concern about the number of children still living in unregistered children’s homes.”

She highlighted a recent BBC investigation that revealed some unregistered children’s homes were charging up to £20,000 a week and still failing to keep very vulnerable children safe.

Responding, Lady Smith said: “She is right that some extraordinary amounts of money are being charged by placement providers. The Local Government Association found, for example, that in 2022-23, 91% of respondent councils paid at least £10,000 per week or more for one placement, compared to 23% in 2018-19.

“That is why we need to ensure that a range of safe, regulated, high-quality placements are available for children, and to ensure that where there is excessive profit, we take action against that as well.”

Tory shadow education minister Baroness Barran pointed out it was illegal to send a child to an unregistered children’s home.

She said: “What are the Government doing to make sure that children do not go to unregistered homes at all, whatever they cost?”

In reply, the minister said: “She identifies the absolute difficulty and the challenging circumstances that directors of children’s services and others find themselves in.

“For example, on a Friday afternoon, when faced with having to find a placement for a child urgently, they have no other option, because of a failure to provide sufficient places, than to place a child in an unregulated home.

“This is so unsatisfactory for everybody, and that is why, through the provisions we will bring forward in the Children’s Wellbeing Bill and through appropriate investment in increasing the number of places, we will try to ensure that that happens far less in the future.”