On 26 January, our campaigns team submitted a joint briefing to Peers in the House of Lords ahead of key debates on the Children’s Wellbeing and Schools Bill.
Alongside BASW, NYAS, Become, Article 39, TACT and Settle, we highlighted the urgent need to end the continued and illegal use of unregistered accommodation for children in care.
Read the full briefing here: https://cdn.togethertrust.org.uk/uploads/2026/01/Briefing-Ending-Unregistered-Homes-for-Children-in-Care.pdf
In this blog, I outline the current situation with illegal accommodation for children in care, summarise what we asked Peers in our briefing, and explain the next steps as the Bill progresses.
The scale of the problem
Across England, hundreds of children in care are still being housed in accommodation that is not registered with Ofstedand cannot guarantee even the most basic standards of care.
Key findings from our FOI work remain stark:
- 277% increase in unregistered placements between 2020-23
- More than 700 children placed in illegal settings between 2020-23
- Over £100 million spent annually on illegal accommodation
- Children as young as 10 placed in unregistered settings
These concerns are now echoed nationally. The Public Accounts Committee (PAC) recently reported that in September 2024, nearly 800 children in care – around one in ten in residential settings – were living in accommodation not registered with Ofsted.
The Children’s Commissioner highlighted that many of these children have mental health needs or SEND, often staying in illegal settings for months or even years.
Around 84% of registered homes now privately owned, many by large venture‑capital‑backed groups, raising serious questions about profit motives in children’s care.
Andrew Reece from the British Association for Social Workers recently spoke to LBC news about children’s social care, including the use of illegal accommodation, stressing that profit‑driven models are failing children. Andrew highlighted that local authority and voluntary‑sector homes consistently deliver better care, which is reflected in their inspection outcomes.
Watch the full interview here: https://www.youtube.com/watch?v=53ivb003tFQ
A crucial moment for reform
The Children’s Wellbeing and Schools Bill proposes new enforcement powers for Ofsted, including the ability to fine illegal providers. Fines alone will not address the systemic drivers of unregistered placements.
Also, it is unclear whether financial penalties will deter well‑resourced providers who may simply absorb the cost and continue operating illegally.
Without a clear, time‑bound national strategy to phase out illegal placements and secure sufficiency, children will remain at risk regardless of enforcement changes.
In our briefing, we call for:
- A coordinated plan between the Department for Education, Ofsted and the Ministry of Justice to end the use of unregistered settings for children in care
- A national sufficiency and workforce strategy to expand regulated, therapeutic care
- A guarantee that all children in care will access regulated care up to at least age 18
We also asked Peers to press the Minister for clarity on immediate actions to reduce illegal placements, secure safe emergency accommodation, expand specialist provision for disabled children and those with complex needs, and introduce enforcement measures that genuinely deter illegal providers. We further called for regular national data to ensure progress can be transparently monitored.
Working together for change
As debates unfold in the House of Lords, we will continue to observe developments closely, analyse the implications, and keep our supporters and partners updated.
- We encourage charities, practitioners and people with lived experience to get in touch if they’re interested in jointly coordinated action.
Contact: styliana.pasiardi@togethertrust.org.uk - Sign up for our campaign updates
- Follow us on Facebook, Bluesky, and LinkedIn
Together, we can push for a system that guarantees every child the safety, stability and care they deserve.
