Children’s Care Home Providers Financial Oversight 2026-01-19
2026-01-19
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Questions & Answers
Q1
Partial Answer
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Context
The Public Accounts Committee published a report highlighting the lack of financial and governance oversight for private companies running children's homes, with 84% of UK children's homes being privately managed. The largest providers average profits of 22% on charges per child per year of £318,000.
Following up on the Public Accounts Committee report published last Friday, what more can the Government do to ensure that children’s homes have appropriate financial and governance oversight?
Welcoming interest in this issue, I highlighted that reports from the National Audit Office and Public Accounts Committee demonstrate the need for radical reform in children’s social care. The Government is investing £2.4 billion to reset the system overall so it can intervene earlier and will expand fostering plans soon. Additionally, measures are being introduced through the Children's Wellbeing and Schools Bill to establish a financial oversight mechanism and profit cap.
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Assessment & feedback
The exact nature of further specific actions beyond current legislative measures were not detailed.
Response accuracy