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Ofsted has announced a series of measures aimed at tackling the increasing use of unregistered children's homes, warning that illegal provision is placing vulnerable children at risk and reflects wider pressures within the children's social care system.
The inspectorate said a shortage of suitable placements, combined with challenges relating to workforce capacity, housing affordability and a lack of foster carers, has contributed to a growing reliance on unregistered accommodation by local authorities.
Research published by Ofsted on 2 July highlights longstanding concerns about sufficiency in children's social care, noting that although there are now more children's homes than ever before, many are smaller, located in areas of lower demand or are unable to meet the needs of children requiring residential care.
Local authorities have a statutory duty to ensure there are sufficient placements for looked-after children that are appropriate to their needs and, where possible, close to home. However, Ofsted said that increasing difficulties in securing suitable accommodation have resulted in some children being placed far from their communities or in settings that do not adequately meet their needs.
The inspectorate warned that unregistered children's homes expose children to the risk of being cared for by individuals who have not been appropriately vetted and suggested there are increasing concerns about profiteering and criminal activity within parts of the sector.
In response, Ofsted has outlined a revised enforcement approach which will include greater use of criminal investigations and prosecutions against providers operating unlawfully. It also intends to work more closely with local authorities, police forces and other agencies to take immediate action where children may be at risk.
Proposals contained within Ofsted's forthcoming consultation on reforms to children's social care inspection are expected to include measures designed to discourage the use of illegal provision. Under the plans, local authorities using unregistered settings without demonstrating sustained efforts to address local sufficiency issues could receive lower inspection judgements, including "urgent improvement" or "needs attention" grades.
Ofsted has also updated its guidance on the registration of children's homes, introducing a more targeted approach to processing applications. The revised arrangements are intended to prioritise providers seeking to establish specialist services in areas where there is the greatest demand for placements.
As part of the new process, prospective providers will be expected to demonstrate engagement with relevant local authorities to ensure that proposed provision aligns with local and regional placement needs.
The approach has received support from the Children's Minister, Josh MacAlister, who has written to Ofsted endorsing a more targeted system for processing applications that can deliver homes in the areas where they are most needed.
Sir Martyn Oliver, His Majesty's Chief Inspector at Ofsted, described illegal children's homes as a "scourge" that prioritise profit over children's safety and welfare. He said the findings demonstrate the need for the right homes in the right places rather than simply increasing overall capacity, adding that a greater focus on sufficiency alongside stronger action against unlawful providers would help address pressures across the children's social care system.
To read the Local Government Association's response to the announcement, click here.
To read the Association of Directors of Children’s Services' response to the announcement, click here.
