An in-depth investigation into the privatisation of UK children’s residential care and its devastating consequences

The Alarming Reality

In what experts are calling a “national emergency”, private children’s homes across Britain are facing unprecedented scrutiny. Recent investigations have uncovered disturbing patterns of exploitation, inadequate care, and potential links to criminal activities affecting our most vulnerable young people.

View latest Ofsted Report

Understanding the Scale

The transformation of children’s social care in Britain has been dramatic and concerning:

• Over 80% of children’s homes are now privately operated
• More than £1 billion spent annually by councils
• Average weekly cost per child: £4,000
• Individual placements costing up to £208,000 per year
• Profit margins reaching 23% for some providers

[Source: Department for Education Statistics]

Highest-Risk Areas Identified

Greater Manchester

Manchester has emerged as one of the most concerning regions with:

• Multiple failed inspections in the past 12 months
• High concentration of homes in known crime hotspots
• Significant safeguarding concerns
  View Manchester Children’s Services Report

Doesn’t it seem a bit suspect that Mancester City Council have removed this report? Aren’t they complicit in far too many child safety scandals already?

West Midlands

The situation in Birmingham and surrounding areas shows:

• Disproportionate number of homes in crime hotspots
• Higher-than-average police callouts
• Reports of inadequate safeguarding measures
  View West Midlands Safeguarding Report

Lancashire

Particular concerns have been raised about:

• Clustering of homes in deprived areas
• Patterns of child disappearances
• Limited oversight capacity
  View Lancashire Children’s Services

The Exploitation Factor

Financial Exploitation

Private equity firms and property developers are making millions while providing substandard care:

• Some homes charging councils up to £208,000 per child annually
• Profit margins of up to 23% reported
• Limited reinvestment in quality improvement
• Cost-cutting measures affecting care quality

Criminal Exploitation Risks

Former Education Secretary Michael Gove has highlighted how vulnerable young people are being “effectively handed over to paedophile gangs” due to:

• “Absurd” and “bewildering” secrecy rules
• Poor location choices
• Insufficient safeguarding measures
• Inadequate staff training

Quality of Care Crisis

Failed Standards

Recent inspections reveal:

• 63 privately owned homes failed to meet Government’s minimum standards
• One in three homes run by Britain’s largest private provider rated below “good”
• Higher numbers of police callouts compared to council-run homes
• Significant whistleblowing complaints

Systemic Issues

The private sector’s approach has created additional problems:

• Cherry-picking less challenging children
• Leaving councils struggling with complex cases
• Insufficient specialist care provision
• High staff turnover rates

Location and Safety Concerns

Geographic Distribution

Analysis shows concerning patterns:

• Three in ten homes located in worst crime hotspots
• Concentration in areas with lower property prices
• Limited access to support services
• Poor transport links affecting family contact

Safeguarding Failures

Major concerns include:

• Insufficient background checks
• Limited local authority oversight
• Poor inter-agency communication
• Delayed responses to concerns

Taking Action

For Professionals

If you work in the sector:

• Report concerns to Ofsted
• Contact your local Safeguarding Board
• Document all incidents thoroughly
• Support whistleblowing procedures

For Public

If you have concerns:

• Contact your local councillor
• Report safeguarding issues to your local authority
• Support local advocacy groups
• Join community safeguarding initiatives

Emergency Contacts

Immediate Help

• Child Protection Emergency: 999
• NSPCC: 0808 800 5000
• Childline: 0800 1111

Support Services

• NSPCC: Support and advice
• Childline: Support for children
• Care Quality Commission: Report concerns

Conclusion

The privatisation of children’s homes represents a critical failure in our duty to protect vulnerable young people. With profit increasingly taking precedence over care quality and safety, urgent reform is needed to prevent further harm to those who need our protection most.

This investigation uses publicly available information from governmental and regulatory sources. For immediate safeguarding concerns, please contact your local authority’s child protection team or the police.

Important Links:
Report a Safeguarding Concern
Contact Your Local Authority
Support Child Protection Charities

Contact us with any concerns.

UPDATE: CareTech UK is the biggest private Children’s Care Home owners, their reviews and ratings are here CARETECH.