Sevenfold increase in number of children placed in unregistered homes over past three years

There has been an almost sevenfold increase in the number of children placed in unregistered homes in England over the past three years, Ofsted data has shown.

The number placed in confirmed unregistered children’s homes rose from 147 in 2020-21 to 982 in 2023-24. Over that time, the number of such homes identified by Ofsted increased from 144 to 931.

[Source: Ofsted (2024) Unregistered children’s homes]

Unregistered homes ‘typically of poor quality’

It is illegal to provide care and accommodation to a child without registering as a children’s home, and any provider that does not register is committing an offence, which generally triggers a warning letter from the regulator.

The increased use of registered placements comes despite Ofsted finding that they were typically of “poor quality”. This was evidenced by the fact that just 6% of unregistered settings applied to register with Ofsted after receiving a warning letter, with a mere 8% of these applications being approved.

Deprivation of liberty orders

One factor behind the rise in the number of unregistered placements is councils’ increasing use of deprivation of liberty orders – obtained from the High Court – for children with very complex needs or at high risk.

Many of these young people are placed in unregistered placements because of the lack of alternatives, including the severe shortage of secure children’s homes.

However, while Ofsted recorded a rise in the number of children on deprivation of liberty orders placed in unregistered settings, they accounted for just 12% of cases in 2023-24 and 15% in each of 2022-23 and 2021-22.

‘An indictment of the state of social care’

As a result, the increase in the use of unregistered homes is likely to reflect the lack of available placements for looked-after children more generally. This is the result of factors including the falling number of mainstream fostering households, the mismatch between the location of children’s homes and need, and the historically high numbers of children in care.

Children in care charity Become described the rise in the use of unregistered homes as “a real indictment of the current state of children’s social care”.

Chief executive Katharine Sacks-Jones said it meant that “hundreds of children who’ve experienced trauma are not being provided with the specialist, quality care they need, and instead are living in illegal and often completely unsuitable accommodation with limited support”.

Proposals to help Ofsted crack down on unregistered homes

The news comes with the government having announced plans for Ofsted to take swifter enforcement action against providers of unregistered placements.

Under these, the regulator, which has welcomed the proposals, would be given powers to fine providers, as an alternative to criminal prosecutions.

Sacks-Jones added: “The government’s recent proposals to address the issue of unregistered homes is welcome, but this latest data shows how urgently and robustly the government must act.

“We must see stronger scrutiny and enforcement so that all children are able to live in safe homes and receive the high-quality care and support they need to thrive.”

ADCS voices concerns over government plan

However, the proposals sparked concerns from Association of Directors of Children’s Services president Andy Smith, in his speech to last week’s National Children and Adult Services Conference.

“In an ideal world, we would want all placements to be in good quality registered settings, yet the reality is that the current framework of regulation does not allow us to effectively meet the needs of some of our most vulnerable children who have highly complex needs,” Smith said.

“Before we start to turn the dial in the wrong direction and issue civil proceedings against providers, we need to make sure that we have the right services in the right place to meet need.”