Sir Martyn Oliver’s view on unregistered children’s homes has been clear since his appointment: “Illegal homes are a scourge on our society, placing profit above children’s welfare and safety.” 

Ofsted has, within the last week, announced a tougher approach to tackling unregistered children’s homes, including increased use of criminal investigations and prosecutions against providers operating unlawfully.

The changes represent a significant development for children’s social care providers and reinforce Ofsted’s intention to take stronger enforcement action when children’s homes operate without the required registration.

This is unlikely to be seen as controversial in the regulatory landscape. Children should be living in safe, properly regulated settings and providers operating children’s homes should be registered where required by law.

However, the most interesting aspect of Ofsted’s announcement is not the promise of stronger enforcement. It is the regulator’s acknowledgement that the growth in unregistered provision is closely linked to a much wider issue: the continuing shortage of suitable placements for children in care.

Key points

• Ofsted has announced a tougher approach to tackling unregistered children’s homes.
• Providers operating without registration may face criminal investigation and prosecution.
• Local authorities could receive poorer inspection outcomes where they continue to use illegal provision.
• Ofsted is prioritising registration applications that address local sufficiency needs.
• Providers should review whether their services require registration and seek advice at an early stage.

What action is Ofsted taking against unregistered children’s homes?

Ofsted has made clear that it intends to take stronger action against providers operating unlawfully. It will continue to:

• Increase criminal investigations and prosecutions;
• Visit services where concerns arise;
• Gathering evidence relating to the operation and management of unregistered provision;
• Take enforcement action where it is considered that offences have been committed.

As part of its forthcoming consultation on children’s social care inspection reforms, Ofsted has indicated that councils could face poorer inspection outcomes where they continue to use illegal provision and cannot demonstrate meaningful action to improve local sufficiency.  We continue to see a number of local authorities encourage providers who are not yet registered to take placements for children unlawfully.

This signals a broader shift in Ofsted’s approach, with increasing scrutiny of local authorities whose commissioning practices contribute to the problem. Whilst enforcement has traditionally focused on providers, the regulator appears increasingly willing to scrutinise councils that continue to place children in settings that should be registered.

Why are unregistered children’s homes increasing?

Alongside its announcement, Ofsted published research examining sufficiency within children’s social care. Workforce pressures, a shortage of foster carers and wider housing challenges continue to affect the availability of suitable placements.

Whilst there are more children’s homes than ever before, they are not always located where they are needed most and are not always able to meet the needs of children requiring specialist support.

We are hearing that the challenge facing the sector is not simply a lack of homes; it is a lack of the right homes, in the right places, for the children who need them.

A more targeted approach to registrations

Ofsted has also updated its approach to registering children’s homes, prioritising applications which address identified sufficiency needs.

For providers considering growth, demonstrating local need and engagement with local authorities is likely to become increasingly important.

What does this mean in practice?

Ofsted’s announcement suggests that providers should expect increased scrutiny where there are concerns about unregistered provision. Investigations can develop quickly, often involving requests for information, site visits, interviews with managers and staff, and engagement with local authorities and other agencies.

Where Ofsted considers that a provider is operating a children’s home without registration, the matter may ultimately lead to a criminal investigation and prosecution.

Frequently asked questions

What is an unregistered children’s home?

An unregistered children’s home is a service that meets the legal definition of a children’s home but does not hold Ofsted registration.

Can Ofsted prosecute providers operating without registration?

Yes. Operating a children’s home without the required registration is a criminal offence and may result in investigation and prosecution.

Can local authorities be criticised for using unregistered provision?

Ofsted has indicated that councils may face poorer inspection outcomes where they continue to use illegal provision without taking meaningful action to improve local sufficiency.

When should providers seek legal advice?

Providers should seek legal advice as soon as concerns are raised about registration requirements, inspections, investigations or alleged unregistered provision.

How can we help?

Our Health & Social Care team advises providers at every stage of the process, including:

• Responding to Ofsted enquiries and inspections;
• Advising on whether a service requires registration;
• Defending allegations of unregistered provision;
• Assisting during criminal investigations and interviews;
• Defending prosecutions brought by Ofsted;
• Advising on registration applications and wider regulatory compliance.

Seeking advice at an early stage can help providers understand their position, manage regulatory risk and respond effectively to Ofsted’s concerns before matters escalate.

If you have been contacted by Ofsted regarding alleged unregistered provision or would like advice on whether your service requires registration, please get in touch with a member of our Health & Social Care team at caresectorteam@la-law.com.