Councils in England are paying more than £125m a year of taxpayers' money to place vulnerable children in illegal care homes, an investigation by the Guardian and the Bureau of Investigative Journalism has found.
Key facts
- Councils pay more than £125m a year to place vulnerable children in illegal care homes in England.
- The findings come from an investigation by the Guardian and the Bureau of Investigative Journalism (TBIJ).
- The homes involved are not Ofsted-inspected.
- Investigators found a booming industry of businesses profiting from a shortage of beds for the most at-risk children.
Councils in England are paying more than £125m a year of taxpayers’ money to place vulnerable children in illegal care homes, according to an investigation by the Guardian and the Bureau of Investigative Journalism (TBIJ).
The joint investigation uncovered what it described as a booming industry of businesses profiting from a shortage of beds for the most at-risk children in Ofsted-inspected homes. With demand outstripping the supply of registered places, councils have turned to provision that falls outside the official inspection regime.
The reporting highlights the scale of public money flowing into these arrangements, with the annual figure exceeding £125m. The homes at the centre of the findings are not inspected by Ofsted, the regulator responsible for overseeing children’s care standards in England.
According to the Guardian, the situation is illustrated by individual cases, including the story of a child referred to as Princess, which the outlet said highlights the scourge of illegal care provision.
The investigation points to a system under strain, in which a shortage of registered beds has created an opening for businesses to profit while placing some of the most vulnerable children in settings that operate outside the legal framework.
Why it matters
The findings raise serious questions about how public money is being spent to care for some of the most vulnerable children in England, and whether they are being placed in safe, properly regulated settings. A shortage of inspected beds appears to be driving councils toward unregistered provision, exposing children to homes that fall outside official oversight.
Frequently asked questions
How much are councils spending on illegal care homes?
According to the investigation by the Guardian and the Bureau of Investigative Journalism, councils in England are paying more than £125m a year to place vulnerable children in illegal care homes.
Why are children being placed in unregistered homes?
The investigation found a shortage of beds for the most at-risk children in Ofsted-inspected homes, which has allowed a booming industry of businesses to profit by providing places outside the official system.
Who carried out the investigation?
The investigation was conducted jointly by the Guardian and the Bureau of Investigative Journalism (TBIJ).