Cost of children's homes doubles but care can be poor, says report

The cost of residential care for vulnerable children in England has nearly doubled in five years but many children still do not receive appropriate care, says a report from the independent public spending watchdog.

The National Audit Office (NAO) says councils on average spent £318,400 on each child placed in a children's home in the year ending March 2024.

But these huge sums do not represent value for money, the report concludes.

"I do not know where the money is being spent," says Ezra Quinton, now 20, who recalls smashed windows and broken glass in the showers of one of the care homes he was placed in.

The government has already said it plans to limit the profits private companies can make, however the Children's Homes Association, which represents providers paying tax in the UK, argues that council-run homes can in fact be more expensive.

"We know that official data shows that local authority costs are higher," said the association's chief executive Mark Kerr.

"So if there's a value for money question then the independent sector arguably demonstrates more value for money than local authorities," he added.