National Scandal: Unregulated Child Social Care in England

The children’s commissioner has labeled the rise of unregulated child social care in England a “national scandal,” as a recent report reveals a staggering 370% increase in the number of children placed in unregulated settings over the past five years. Data from Ofsted indicates that the number of unregistered homes surged from 144 in 2020-21 to 680 in 2024-25, a figure that experts believe underrepresents the actual situation. Vulnerable children are being temporarily housed in unregulated environments such as caravans, Airbnbs, and holiday camps, raising concerns about their safety and well-being.

The Guardian

The report highlights a troubling trend where local authorities are compelled to place children in illegal settings due to a lack of available, suitable options. A former director of children’s services acknowledged that senior officials were aware of the unlawful nature of these placements but felt they had no choice in the absence of alternatives. Dame Rachel de Souza, the children’s commissioner, emphasized the urgency of addressing this issue, stating that hundreds of children with complex needs are being placed in environments lacking regulation and safeguards.

The Guardian

In response to the crisis, children’s minister Josh MacAlister has asserted that those operating illegal care homes must register with Ofsted or face severe penalties. He announced new legislation aimed at empowering Ofsted to impose unlimited fines and shut down unregistered homes. The report also noted a disturbing case involving a 15-year-old girl who was sexually assaulted in an unregistered home, underscoring the dangers these vulnerable children face.

The Guardian

The financial implications of unregulated placements are significant, with the average weekly cost for such settings reaching £10,500. The public accounts committee has described the children’s residential care market in England as “dysfunctional,” with one in ten children residing in illegal homes. Despite the alarming statistics, no unregistered provider has faced prosecution for operating unlawfully, although Ofsted has initiated several legal actions that are currently pending in the courts.

The Guardian

Ofsted has acknowledged the challenges in prosecuting unregistered providers, citing the lengthy and costly nature of legal proceedings. However, they are working diligently to investigate these homes and compel compliance with registration requirements. Government sources have claimed progress in addressing the issue, highlighting an £88 million initiative aimed at creating 10,000 new foster care placements as part of a broader strategy to reform the child social care system.

The Guardian

Critics, including Ashley Horsey, chief executive of Commonweal Housing, have expressed deep concern over the report's findings, indicating that the current situation reflects a failure of policy and regulation. The urgent need for systemic reform is echoed by various stakeholders who stress that the welfare of vulnerable children must be prioritized to prevent further harm.

The Guardian

• “I have been warning about this practice for years, and I need leaders at every level to grip it urgently,” — Dame Rachel de Souza, Children’s Commissioner

The Guardian

• “Too many children are being placed in unlawful settings where they’re at risk of harm. The use of these placements must stop,” — Ofsted Spokesperson

The Guardian

• “It tells us that hundreds of children are finding themselves at the sharpest end of a failure of policy and a failure of regulation, when local authorities have no other option but to place them in unregulated settings.” — Ashley Horsey, Chief Executive of Commonweal Housing

The Guardian