22
Acknowledged
Private providers significantly dominate the residential care market, owning 84% of all settings.
Conclusion
In 2024–25, 84% of residential care settings registered with Ofsted, including supported accommodation and children’s homes, were owned by private providers.57 The Department told us this accounts for 74% of residential care places, because privately-owned homes tend to offer fewer places than those run by local authorities and the voluntary sector. It told us there are benefits to having a mix of different types of providers and that private providers have a place in the market but that it would worry about an over-dominance of a particular kind of provider.58
Government Response Summary
Acknowledges that the Department does not fully understand the financial position of private providers.
Government Response
Acknowledged
Government Response
Acknowledged
HM Government
Acknowledged
5. PAC conclusion: Despite private providers providing most care home places, the Department does not fully understand their financial position.
Source
Committee
Public Accounts Committee
Report
61st Report - Financial sustainability of children’s care homes
16 Jan 2026
HC 1233
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.4 yrs
Report published
16 Jan 2026