Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Acknowledged
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 Summary
Acknowledges that the Department does not fully understand the financial position of private providers.
Government Response
Acknowledged
HM Government
Acknowledged
5. PAC conclusion: Despite private providers providing most care home places, the Department does not fully understand their financial position.