Understanding the market in children’s care homes

A report examined the children’s residential care market in England, factors influencing placement decisions, and the use of out of authority placements (placements of children in homes in a different local authority area).

It said that, while cost was a key consideration, local authorities’ key aims were to meet the needs of the child. Where out of authority placements were selected, it said this was most frequently to meet the need for a secure placement, or to reduce risk to the child.

Some local authorities were said to use out of area placements that other authorities had considered of insufficient quality. It noted the resourcing issues involved in out of authority placements and said that information sharing must be improved to protect children more effectively.

It also suggested amendments to regulations to improve collaboration between services and to strengthen the inspection regime.