Story perspectives

Children's Care Costs Soar Amid Market Dysfunction

9/12/2025

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Summary

Story summary

The annual cost of residential children's care in England has surged to £318,000, largely due to private firms exploiting market failures.
The National Audit Office (NAO) identifies a dysfunctional £3 billion market, leading to unsustainable costs and inadequate care.
The number of unregistered homes increased from 147 in 2020 to 982 in 2024, with many children placed far from their families.
84% of the 4,000 registered children's homes are privately owned, often associated with private equity firms.
Local leaders urge improved financial oversight of private providers as care costs continue to rise.

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Story summary

The annual cost of residential children's care in England has surged to £318,000, largely due to private firms exploiting market failures.
The National Audit Office (NAO) identifies a dysfunctional £3 billion market, leading to unsustainable costs and inadequate care.
The number of unregistered homes increased from 147 in 2020 to 982 in 2024, with many children placed far from their families.
84% of the 4,000 registered children's homes are privately owned, often associated with private equity firms.
Local leaders urge improved financial oversight of private providers as care costs continue to rise.