Ofsted outlines new approach to tackle ‘scourge’ of illegal children’s homes

Research by a housing charity in April found that the use of illegal children’s homes to house young people has grown nearly four times in just four years.

Ofsted will crack down on these unregistered children’s housing providers through criminal investigations and prosecution, and by working with partners such as the local authority or the police to take immediate action to safeguard children.

In addition, the body’s upcoming consultation on children’s social care inspection reforms will include proposals aimed at eradicating the use of illegal unregistered provision.

This will be done by awarding ‘urgent improvement’ and ‘needs attention’ grades, where local authorities are using illegal provision, and have not demonstrated determined action to match local sufficiency with local need.

Guidance on registering children’s homes has also been updated to prioritise providers offering specialist provision in the right places.

This revised approach aims to make sure that Ofsted’s finite regulatory resources are used to process applications that meet local authorities’ most urgent sufficiency needs and support the welfare of children.

Sir Martyn Oliver, His Majesty’s chief inspector, said: “Illegal homes are a scourge on our society, placing profit above children’s welfare and safety. It’s absolutely right that we do everything in our power to prevent children from being placed in unsafe and unsuitable accommodation.

“The research published today highlights that we need the right homes in the right places, not more homes in the wrong places. Changing our approach to focus on sufficiency, as well as rooting out criminality, will ensure we’re playing our part in tackling this issue.”

Children’s minister Josh MacAlister has written to Ofsted expressing his strong support for a targeted approach to processing applications that can provide homes for children when and where they are needed most. 

As part of a list of criteria for priority applications, Ofsted will expect applicants to have engaged directly with the relevant local authorities to make sure that the proposed provision meets the needs of children locally and regionally. 

Local authorities have a duty to ensure there are enough suitable places for looked-after children, close to their home and able to meet their needs. 

However, while there are now more children’s homes than ever before, homes are getting smaller, are often not in the right places, or are unable to meet the needs of children needing residential care. Meanwhile, local authorities are spending record figures on placements.

Gerald Vernon-Jackson, chair of the Local Government Association’s Children, Young People and Families Committee, said: “Ensuring children get the best care and support is a priority for councils. While no council wants to place a child in an unregistered setting, in many cases they have no choice due to the lack of available provision that meets children’s needs.

“The huge cost of care placements also means there is less money for councils to spend on vital, early help and support for children and families, that can prevent crisis later.

“The sector and government must work together to address this situation and ensure we have sufficient registered homes for children. This will require everyone – including central and local government, Ofsted, the NHS and providers – to act together and tackle the systemic problems in the children’s homes market.

“We support the measures in the Children’s Wellbeing and Schools Bill [now an act] to increase oversight of the largest providers of children’s homes, as well as the introduction of a profit cap to tackle excessive profiteering in the market.”

Ofsted inspects and regulates schools, colleges, childcare providers and children’s social care services in England to ensure they meet required standards.