Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Rejected
Reaffirm commitment to reducing children in unregistered homes to zero by 2027 and detail specific actions.
Recommendation
It is unacceptable that children are placed in illegal settings that are not inspected, increasing safety risks and offering no assurance over the quality of care. Over the last five years, local authorities have reported placing more and more children into unregistered homes. It is illegal to run a children’s home or supported accommodation that is not registered with Ofsted, who cannot routinely inspect these unregistered settings. As such, there is a lack of checks to ensure that children receive high quality care and that they and the wider community are safe. Local authorities do not take the decision to use these homes lightly, only doing so when no registered settings are available, but in September 2024 nearly 800 children in England 3 were in illegal accommodation. However, rather than being used only in short-term emergency circumstances, children stayed an average of around six months in such accommodation. Placing children in unregistered homes is particularly undesirable where their liberty has been taken away through a court order. Delays to Ofsted registering new homes will contribute to some homes remaining unregistered, with Ofsted now introducing targets to register homes within 18 months or two to six months for priority cases. The Department expects it will take two years for improvements to the residential care system to take effect and address the shortages of places that contributes to local authorities using unregistered homes. recommendation In its Treasury Minute response, the Department should reaffirm its commitment to reducing the number of children in unregistered homes to zero by the end of 2027 and set out the specific actions it will take to do so.
Government Response Summary
The government rejects the recommendation to reaffirm a commitment to zero children in unregistered homes by 2027, stating that a fixed deadline does not reflect the complexity. However, it outlines actions to tackle the issue, including £560 million capital funding, new secure placements opening between 2026-2031, new enforcement powers for Ofsted (from Summer 2026), and Ofsted reforms to increase focus on sufficiency.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. The department agrees with the Committee’s conclusion and is clear that placing children in unregistered settings is both unacceptable and unlawful. It has, however, not made a commitment to reduce the number of children in unregistered homes to zero by the end of 2027. Setting a fixed deadline does not sufficiently reflect the complexity of the issue. The department is tackling the running and use of unregistered provision by driving down the demand for residential places, and increasing the sufficiency of high quality, registered placements. The actions set out in response to the committee’s first recommendation support this. LAs often struggle to secure suitable, registered provision for children with the most complex needs. To address this, the government announced £560 million of capital funding to reform the children’s social care system and expand the children’s homes estate. This includes £53 million match-funding to help LAs create up to 200 specialist placements for children with complex trauma by March 2029. This builds on the 277 residential placements already delivered, with a further 70 due in 2026. The government is also expanding capacity in the secure children’s homes estate by 75 placements. Two new homes in the West Midlands and London - areas currently without provision - will open in 2028 and 2030, providing welfare and step-down placements. Four major rebuild projects are underway in Lincolnshire (2027), Devon and Hampshire (2030), and South Gloucestershire (2031). New powers in the Children’s Wellbeing and Schools Bill will strengthen enforcement against unregistered providers. From summer 2026 (subject to Royal Assent) Ofsted will be able to issue uncapped fines to providers operating or running unregistered settings, allowing faster action against providers. Ofsted will also consult on reforms to the inspection of local authority children’s services (ILACS), including ways to increase their focus on sufficiency planning and the use of unregistered provision.