England’s children’s commissioner has urged government ministers to address the escalating issue of unregulated child social care, described as a national scandal. A recent report highlights a surge of over 370% in such placements over five years, placing some of the most at-risk children in temporary setups like caravans, short-term rentals, and recreational sites. These arrangements can heighten harm for children already enduring significant trauma.
Analysis of regulatory data shows unregistered accommodations rose from 144 in 2020-21 to 680 in 2024-25, though experts believe this underrepresents the actual scale. Under the 2000 Care Standards Act, all children’s homes must register with the oversight body. Private firms are criticized for imposing high fees on local authorities for these inadequate options when approved homes or foster care are unavailable.
The report indicates that for-profit operators, managing over 80% of residential child facilities in England, often charge between £20,000 and £40,000 weekly per child. Social workers report being forced into difficult decisions, placing children with severe needs in uninspected locations or risking leaving them without shelter.
Professionals note that such placements have become far more common, shifting from rare occurrences to weekly events. The report’s lead author emphasized that while not all unregistered sites are substandard, the lack of oversight means authorities are unaware of children’s conditions.
Some licensed providers avoid accepting high-risk youths, fearing impacts on their evaluations, preferring vacant spots over challenging cases involving gang ties, frequent absences, or severe behaviors. Accounts include placing a five-year-old in an unauthorized setting and another child in a caravan.
A former children’s services director acknowledged that officials sometimes proceed unlawfully due to limited alternatives. The commissioner, who released related findings in January showing 669 children in unregistered homes as of September 1, 2025, stressed the need for immediate intervention. She highlighted that many children with intricate requirements end up in these settings due to insufficient safe options.
The children’s minister stated that operators of illegal facilities must register or face penalties, with new legislation empowering regulators to impose unlimited fines and closures. The head of a housing charity called the findings alarming, pointing to policy and regulatory shortcomings that leave local authorities with no choice but unregulated placements.
A recent incident underscored the dangers: a teenager at risk was placed in an unregistered home far from her original location, where she suffered assault after being given alcohol by caregivers hired by a private company. The commissioner’s report revealed that 44% of affected children were in illegal homes, 7% in short-term rentals or camps, with average stays of six months and some exceeding a year.
Costs averaged £10,500 weekly, with some placements totaling over £1 million. In January, a parliamentary committee labeled the residential care market dysfunctional, noting one in ten children in illegal settings. No prosecutions have occurred for operating unregistered facilities.
