Executive Summary
The Report
This report provides information and analysis gathered by Sufficiency.org.uk. The first to every local authority responsible for children’s social care about their current use of registered children’s home provision and their plans for opening their own provision as of September 1st, 2024. The other in October 2024 to the Department of Education requesting the names of each local authority that had been awarded grants to open new children’s home provision.
The information was sought due to a lack of visible national data on the plans of local authorities to open and or expand their own provisions. The report aims to:
- help local authorities better understand their use of children’s homes in comparison to neighbouring local and regional areas.
- prepare local authorities and the Department of Education for new growth, including staff recruitment and retention, in a market that is and has been dominated by the private sector for decades.
- provide Ofsted with a clearer national picture of the projected increase in applications.
Local authority children’s home capacity
On September 1st, 2024, English local authorities (LA) placed 9,272 children or young people (CYP) in residential children’s homes, this equated to 11.36% of the children looked after (CLA) population. Of these placements only 1,058 were with 347 local authority operated homes, this equated to 11.41% of all registered children’s home population.
The East Midlands had the highest percentage of CYP in children’s homes with 14.6% of CLA and the South East had the highest total with 1,326 CYP. Yorkshire & Humber had the lowest by percentage with 9.9% and the East of England the lowest with 694 CYP.
In terms of LA operated homes, Yorkshire & Humber had the highest percentage of children living in their own homes with 24.1% and the highest total with 229. The South West has the lowest percentage of CYP in their own homes with 3.5% and the lowest total with just 28 CYP.
Projected growth
77 local authorities have firm, budgeted plans to open their own children’s homes by the end of the 2026/2027 financial year, this equates to 237 new homes throughout England bringing the total homes to 584 homes. Of these 237 homes, 100 have received DfE match grant funding.
Of the 77 local authorities planning to open homes, 26 do not currently operate their own children’s homes. Given the current difficulties in recruiting suitably qualified staff, particularly registered managers, these 26 local authorities in particular may face challenges with opening these homes in an efficient timescale. This risk of delay is further exacerbated by the continued challenges within Ofsted to support the registration process with pace.
Consideration also needs to be given to what if any impact a significant rise in the number of local authority children’s homes will have regionally and nationally on the private provider market.
The North West is planning to open the most homes with 43 (129 beds) and the South East is planning on opening the most beds with 153 planned (35 homes). As a percentage of growth, the South West is projecting the largest with a 234% increase from 12 homes (39 beds) to 27 homes (91 beds).
Using the average current LA operated home occupancy rates of 80% these new homes should increase the current beds used from 1,058 to a new total of 1,622 which is an overall growth of 57%. This projected growth should enable local authorities to meet 17.9% of need, up from 11.41% currently (Sept 24) achieved.
This will reduce the reliance on private and voluntary children’s homes to from 88.6% to 82.1%. In doing so also enable more children and young people to remain or return closer to home as reduce the pressure to place CYP in unregulated placements.
Other reports
This report should read in conjunction with the English local authority children’s placement sufficiency analysis – 2024