Select committee: Public Accounts Committee
Conclusion 9
61st Report - Financial sustainability of children’s care homes
Published 16 Jan 2026
Addressed to HM Treasury
Public Accounts Committee Financial sustainability of children’s care homes All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We asked the Department and other witnesses about the circumstances surrounding a young person recently taking their own life after turning 18 and facing the uncertainty of moving out of the children’s social care system. A situation which the Chief Social worker for children and families agreed was shocking.16 Sky News analysis found that 91 care leavers aged 16 to 25 have died in the past year.17 The Children’s Commissioner, Association of Directors of Children’s Services and Children’s Homes Association described specific challenges around the transition from children’s social care to adult services and personal advisors, with local authorities having 9 Qq 36-37 10 Qq 61, 68 11 Q 62 12 Qq 63-73 13 Q 11 14 C&AG’s Report, para 3.6 15 Q 32; C&AG’s Report, para 6 16 Q 24, 93-95 17 Sky News, Council facing urgent questions over deaths of two more teens, 19 November 2025 9 some duties for care leavers up to 25 years.18 The Department told us that it has extended the reporting of deaths to include care leavers up to the age of 24. When we stressed the need for better co-ordination between children’s and adult social care services, the Department told us this is an area that it needs to look at again. It described needing to look more carefully at common factors for those experiencing challenges, look at how it can share learning, and create environments better at preventing such incidents.19 Use of unregistered homes
From: Public Accounts Committee, 61st Report - Financial sustainability of children’s care homes (HC 1233), 16 January 2026
Government response
The government responded to the whole report on 1 April 2026 (deadline 16 March 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with the Committee's recommendations on five of the six areas it addresses (it states agreement for recommendations 1, 3, 4, 5 and 6), but disagrees with the recommendation to commit to reducing unregistered placements to zero by the end of 2027.
- On unregistered homes, the government disagrees with the recommendation and says it "has, however, not made a commitment" to reduce the number to zero by the end of 2027, because "Setting a fixed deadline does not sufficiently reflect the complexity of the issue."
- From summer 2026 "(subject to Royal Assent)", Ofsted will be able to issue uncapped fines to providers operating unregistered settings, and Ofsted will also consult on reforms to the inspection of local authority children's services.
- On regional collaboration, the government agrees with the recommendation, with a target implementation date of Spring 2029. Its "vision is for every LA to be part of an RCC" (Regional Care Co-operative), with an Expression of Interest in Spring backed by over £10 million to support up to six new RCCs in 2026.
- On private providers' finances, the government agrees and will establish a Financial Oversight Scheme through the Children's Wellbeing and Schools Bill, with timings "subject to Royal Assent", expected to cover about 40 providers.