by Styliana Pasiardi, Charity Policy and Campaigns Manager
Every child in care must have a safe place to live, caring adults around them, and the care they need to thrive.
Yet, across England, hundreds of children are being placed in illegal / unregistered accommodation that operates outside the safeguards designed to protect them (PAC, 2026). This is one of the most serious and least visible safeguarding scandals affecting children in care today.
That is why Together Trust charity has worked with Anglia Ruskin University, with input from Commonweal Housing charity, to develop a joint-briefing calling on Government to take action to end the use of illegal children’s homes.
The briefing is supported by 53 individuals from across academia, children’s social care, local government, health, probation, criminal justice and the voluntary sector. We have shared it with ministers, MPs, peers, officials in the Department for Education and Department of Health and Social Care, Ofsted and the Children’s Commissioner for England, calling for urgent action.
What are illegal children’s homes?
These are settings where local authorities place children in care, but which are not registered with Ofsted, as required by law. As a result, they are not subject to the same inspection and regulation as registered children’s homes (PAC, 2026). This means there is no guarantee of care, safeguarding or suitably trained staff.
While some providers may be working towards registration, children in these settings do not benefit from the same safeguards and oversight as children living in registered children’s homes.
Children may be placed far from their families, schools and support networks, and reports have raised serious concerns about exploitation, criminality and harm in some illegal settings (Caluori, 2020), (LBC, 2026).
Why is this happening?
There are not enough suitable homes to meet the needs of children in care, while Ofsted is managing a growing number of applications from providers seeking registration.
Too many local authorities struggle to find placements for children who need intensive support, therapeutic care and stability. (CWH, 2026). Ofsted has updated its registration guidance to prioritise applications for specialist homes in areas with the greatest need. Providers will need to demonstrate that they have engaged with local authorities and are meeting local and regional needs (Ofsted, 2026).
The Government has also introduced new powers allowing Ofsted to issue financial penalties to operators of illegal children’s homes (Children’s Wellbeing and Schools Act 2026). However, we believe that penalties will not solve the problem.
There must be a clear, time-bound plan to end the use of illegal homes. No child should be placed in a setting that lacks the safeguards, oversight and accountability that come with registration, inspection and regulation.
A growing national scandal
Illegal placements have increased dramatically. Between 2020 and 2024, reported illegal settings in Englandincreased by 546% (Ofsted, 2024), while local authorities are estimated to be spending nearly £440 million a year on these placements (Children’s Commissioner, 2024). The true scale may be even greater because not all local authorities report their use of illegal placements.
Children need stability, care and trusted relationships
The children placed in illegal homes are often those with the highest levels of need.
As of 1st September 2025:
- 59% of children had an Education Health Care Plan (EHCP)
- 9.7% had SEND without an EHCP.
- Around 32% are subject to Deprivation of Liberty orders
(Children’s Commissioner, 2026).
These children need stability, trusted relationships and specialist care. Instead, they are being placed in settings that cannot guarantee care or safeguarding. No reasonable parent would accept this for their own child, and children in care deserve no less.
What are we calling for
Our briefing calls on Government to take three key actions:
Commit to ending illegal placements
- The Government should set out a clear, time-bound plan to phase out illegal provision and ensure every child has access to safe, regulated and therapeutic care.
- It should also monitor the impact of new enforcement powers to ensure they effectively deter providers from operating illegally.
Ensure there are enough suitable homes and trusted adults to meet the needs of every child in care
- The Government must invest in expanding high-quality local authority and not-for-profit provision.
- Children in care should never be viewed as a source of profit, and placement decisions should be driven by their needs, safety and wellbeing.
- The government must develop a workforce strategy that supports recruitment, retention, safeguarding and trauma-informed practice.
Improve oversight and transparency
- The Government should introduce a national reporting framework for illegal placements and unmet need, while strengthening safeguarding oversight and accountability when unregistered placements are used.
- Better information will help identify gaps in provision and support future planning.
We cannot look away
The system should help children build safe, stable and loving relationships. Illegal placements do the opposite, leaving some children isolated from support and exposed to unacceptable risks.
Stay up to date and get involved with our policy and campaigns work
- Whether you’re interested in our policy and campaigning work, have experience of an unregistered / illegal children’s home, or would like to collaborate on this issue, we’d love to hear from you. Get in touch with: styliana.pasiardi@togethertrust.org.uk
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