Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Accepted
Detail plans to address barriers creating children's home places, including funding and staffing.
Recommendation
Providers of children’s homes, including local authorities, are not offering the places needed locally, leading to children being placed in homes that do not meet their needs. There are disparities in the places available across the country, particularly for children with more complex needs. For example, there are currently no secure home places for children in London, and 49% of children in England are placed in homes more than 20 miles from their family homes. With long distances and travel involved, social workers find it harder to understand the support available locally and to then spend time with children, which negatively impacts outcomes for those children. Private providers are not incentivised to open homes where they are needed, with local authorities also facing challenges accessing capital support to open their own homes. There are no incentives to help prioritise homes where they are most needed and barriers to creating places remain. This includes difficulties getting reliable capital funding to build new homes, shortages of qualified staff to run and work in residential homes, and difficulties in gaining planning permission for children’s homes. recommendation The Department should detail how it will better understand and address barriers to creating the places needed and set out how it will: provide local authorities more consistent funding and support to create new places; work with Ofsted to resolve delays registering new homes; address challenges in providers receiving planning permission where homes are needed; and ensure providers are better able to secure the qualified staff needed. 4
Government Response Summary
The government agrees and is providing £560 million capital funding to LAs for 2026-2030, has supported Ofsted to update registration prioritisation criteria for new homes, is working with the Ministry of Housing to reform planning processes, and will commission an expert review of professional development for the residential workforce by Summer 2026.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. the right places. The department is providing LAs with long‑term capital funding of £560 million for 2026–2030. This includes investment to refurbish and expand the children’s homes estate as set out above. The expansion of RCCs enable LAs to pool resources and create their own provision. The department is taking steps to remove the barriers that make it harder for providers, including LAs, to establish provision where it is needed. In September 2025 the department supported Ofsted to update their registration prioritisation criteria. This enables Ofsted to prioritise applications for homes needed to meet identified sufficiency gaps, homes receiving DfE capital funding, and those providing specialist care for children with complex needs and/or disability. The department is working with the Ministry of Housing, Communities and Local Government to consider reforms to remove barriers within the planning process. This work is ongoing and subject to ministerial approval. To support children’s homes providers to secure qualified staff, the department will commission an expert-led review of professional development for the residential workforce, to be completed in Summer 2026. It will recommend improvements to qualifications, training, career pathways and workforce standards. The department will work with LAs receiving DfE capital funding for new homes, and with newly formed RCCs, to ensure workforce principles are embedded. The department has provided grant funding to both RCC pathfinders to strengthen workforce capability. Work is ongoing with Ofsted to improve the registration process for children’s home managers, including simplifying transfer of registration when managers move between homes.