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Monitoring and managing the children’s homes market

Work in progress

Scheduled: Summer 2025

Topics: Childcare and children's services, Health and social care, Social care

Departments: Department for Education

On this page

  • Background
  • Scope
  • NAO team

Background

The Department for Education (DfE) has overarching responsibility for children’s services, with local authorities delivering frontline social care services. Between 2015-16 and 2023-24, the numbers of looked after children increased to 83,630 (19%). Over the same period, local authority revenue spending on children’s social care increased from £10.7 billion to £14.6 billion, with a 35% increase (to £97,326) in the average annual cost to look after each child. Around 16% of children looked after are accommodated in children’s homes (including secure homes and supported accommodation).

We previously examined children’s social care in our 2019 report, Pressures on children’s social care. More recently, local authorities and other stakeholders have reported significant concerns with the children’s homes market. These concerns include the availability of places to meet increasing demand, the increasing cost of placements, providers potentially making excessive profits, and issues with the quality of provision.  

Scope

This study will examine DfE’s oversight of the children’s homes market, including supported accommodation, in the wider context of children’s social care. It will consider whether DfE: 

  • understands the challenges within the market
  • is taking sufficient action to address the value for money challenges faced across the market
  • is ensuring that children’s homes and supported accommodation are financially sustainable, cost-effective, and delivering positive outcomes

NAO team

Director: Emma Willson
Audit Manager: Iain Forrester  

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