Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Private providers significantly dominate the residential care market, owning 84% of all settings.
Conclusion
In 2024–25, 84% of residential care settings registered with Ofsted, including supported accommodation and children’s homes, were owned by private providers.57 The Department told us this accounts for 74% of residential care places, because privately-owned homes tend to offer fewer places than those run by local authorities and the voluntary sector. It told us there are benefits to having a mix of different types of providers and that private providers have a place in the market but that it would worry about an over-dominance of a particular kind of provider.58
Government Response
A response document is linked to this report, dated 1 April 2026. Response attribution to this conclusion has not been verified. Read the response document ↗