London Daily

Focus on the big picture.
Sunday, Jan 11, 2026

Revealed: councils paid inadequate care homes £2.3m to house children

Revealed: councils paid inadequate care homes £2.3m to house children

Twenty-three councils placed 58 children in homes owned by failing providers

Councils are placing children in care homes that inspectors say do not provide a good standard of care at a cost of millions of pounds, an investigation has found.

The Guardian asked councils across England for information on the number of children being sent to homes run by 78 providers, all of whose properties were listed by Ofsted as being inadequate or in need of improvement to be good at the end of March.

Fifty-eight children were placed in such homes by at least 23 local authorities in the following three-month period, handing more than £2.3m to failing providers, according to freedom of information responses and analysis of councils’ published expenditure.

The figures could be much higher as a substantial number of councils did not respond, some would not say how many children on the grounds of data protection, and some would not say how much money was spent on providers citing commercial sensitivity.

The Guardian interviewed staff at some of these failing homes, with one former employee accusing bosses of not giving staff appropriate training and only caring about “money through the door”. At another company, a staff member said he had £40 a child to spend on breakfast, lunch and dinner for an entire week.

Critics have described the findings as worrying but said there were not enough homes and councils were in a “straitjacket”, with nowhere to place vulnerable children.

The children’s commissioner, Anne Longfield, said it was not acceptable that young people in care “are being asked to pay the price of system failures … and ultimately put at risk”.

Ann Coffey, the former MP who chaired the all-parliamentary group for runaway and missing children until she stood down at the last election, said children should not be placed in homes where the care is consistently inadequate.

She added: “Local authorities are in a straitjacket really … They have a statutory responsibility for these kids and have to place them somewhere and can only place them somewhere where there is an available home. No social worker would willingly place a child at a home that is inadequate.”

In some instances children were sent to homes run by providers that have repeatedly been deemed inadequate by Ofsted, which as well as inspecting schools, appraises services that care for children and young people.

The regulator rates children’s homes as either outstanding, good, requires improvement to be good or inadequate. Ofsted inspects homes that were judged in the latter two categories at least twice in each year-long inspection period. Homes that are judged as outstanding or good get one full inspection.

Yvette Stanley, Ofsted’s national director for social care, said: “We would expect a council to think long and hard about that [sending a child to a home rated inadequate] and whether it was meeting a child’s needs. When we rate a home as inadequate we are saying it needs to improve radically and with pace, but if we found it unsafe we’d take regulatory action … so it is possible to place a child in an inadequate setting but we would expect them to want to talk to us to reassure themselves about reasons for inadequacy.”

She added that the issues raised were indicative of a lack of capacity in the system to provide for children with complex needs.

A source who works at one care home run by Sherico Care Services was critical of management at the firm’s children’s homes. He said staff were given just £40 a child to do a week’s worth of food shopping. “That is crazy, and makes it challenging for us to manage that. You have to find ways to make pounds stretch, that’s £40 for breakfast, lunch and dinner every day for a week,” the staff member said.

The worker said staff earned about £8.50 an hour and the working hours were “ridiculous”. “You would not be surprised if someone had to work 24 hours, which is crazy,” he said. “But there are no benefits of sleep-ins, you do not get extra pay for staying overnight.”

They added that there had been times when homes were understaffed. “I was in a situation where there was myself and another colleague and three children there. A fight broke out and we had to try to stop that. But what if a third child wanted to get involved? There’s no one there to intervene. Situations like that can get quite dangerous,” he said.

A spokesperson for Sherico said: “We do not recognise the allegations that have been made by the Guardian. No member of staff has made any such complaints to us. We currently operate three homes; one of which is rated good, one requiring improvement and one inadequate. The company took the decision to close two other registered homes. The quality of care provided to our service users is our top priority and we are working hard to bring it up to the required standard where it falls short.”

Another company, Parkview Care, which operates in south-east England, had its facilities rated as “requires improvement to be good”.

Former staff alleged that children were brought in – regardless of whether staff had suitable training to manage them – to get “money through the door”.

One worker claimed: “The home [I worked in] was advertised as a therapeutic establishment but none of the staff were trained therapeutically and did not have the right training to deal with the level of need.”

Parkview said it had a history of providing good quality care to vulnerable children but in June 2018 Ofsted inspections took place that identified issues with the standard of care. The company said improvements were made.

The company added that in February 2019, despite progress being made it was acknowledged that this was “slower than anticipated and they restructured and streamlined the business”, which had a positive effect.

“We continually review all of our operational processes in an effort to exceed the standards with which we must comply,” it said.

The chair of the Local Government Association’s children and young people board, Judith Blake, said: “The vast majority of children’s homes are rated good or outstanding by Ofsted, but year-on-year increases in the number of children entering the care system mean services are under significant and increasing pressure. Demand for children’s home places can often outweigh supply.

“Meanwhile, financial pressures on children services are limiting council’s efforts to develop and maintain the right provision locally. This can mean they are forced to place children in placements that are not best suited to their needs.

“It is important that the government works with councils to urgently improve the availability of high-quality homes that meet the needs of children in care.”

Newsletter

Related Articles

0:00
0:00
Close
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
×